Shufersal was set to open at least ten SPAR stores in Israel. Credit: Sergiy Palamarchuk/Shutterstock.

Supermarket chain Shufersal has terminated an agreement to establish a store network for food retail chain SPAR in Israel, according to a report by Reuters.

The Israeli-based retailer said that the decision was taken due to regulatory restrictions from the Israel Competition Authority and the changing market environment.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Shufersal CEO Uri Watermann was quoted by the news agency as saying: “Following changing market conditions and regulatory requirements and in accordance with the estimates we made during the period from the signing of the agreement until receiving the conditional approval from the competition authority recently, the company decided not to complete the deal.”

Shufersal did not provide additional information on the restrictions imposed by the Israel Competition Authority; however, the Times of Israel, citing the Hebrew press, reported that the authority restricted the supermarket chain’s holding in the joint corporation to 15%.

The Competition Authority spokeswoman said: “Shufersal knew about the conditions from the beginning and was in dialogue with the authority.”

See Also:

In December 2022, Shufersal entered a memorandum of understanding for cooperation with SPAR and was followed by an initial agreement in March this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

As part of the cooperation, Shufersal agreed to invest NIS28m ($7.27m) over three years to open at least ten SPAR stores in Israel and import and sell SPAR products exclusively in its stores.

The agreement would also see the creation of a joint corporation controlled by Israeli businessman Amit Zeev.

Shufersal and Amit Zeev would hold 19.9% and 80.1% stakes in the new entity, respectively.

The joint company was supposed to sign a franchise agreement to operate stores under the SPAR brand.