By NEIL HARTNELL Tribune Business Editor RIVAL food retailers have voiced fears that allowing Super Value to acquire City Markets' remaining stores would create a "virtual monopoly" in the New Providence supermarket business, with an estimated 60-80 per cent market share. Dionisio D'Aguilar, chairman of BISX-listed AML Foods, the owner of the Solomon's SuperCentre and Cost Right formats, told Tribune Business that if the transaction was concluded, Super Value's president, Rupert Roberts, would "probably control 70-80 per cent of the food market" in Nassau. "It would be a virtual monopoly," Mr D'Aguilar told Tribune Business. "Government won't do anything about it. They never did anything about it when Burns House and Butler & Sands merged to create a liquor distribution monopoly. "From a regulatory viewpoint, I see it going through, but it would be a virtual monopoly....... From a consumer standpoint it would be a virtual monopoly that might probably control 70-80 per cent of the food market, and monopolies are not good for consumers. People get frustrated by monopolies and so begin to look for alternatives. But it's a great move for Mr Roberts." The Bahamas has no competition/antitrust laws, or even policies, so there is nothing in statute that the Government could employ to prevent Super Value acquiring the shell that remains of City Markets' business. However, as part of its obligations under the Economic Partnership Agreement (EPA), the Bahamas is supposed to create a competition watchdog body, and appropriate laws/regulations, by 2013 - too late for this potential tie-up. And while the Government could always potentially refuse to approve a merger/acquisition on the grounds that it is not in the national interest, this case does not appear to match that criteria. Without its acquisition by Super Value, there is a strong possibility that City Markets' five remaining locations could close for good, taking around 300 jobs with them. Thus the Government will not stand in the rescue deal's way, given the already-high unemployment rate and looming general election. And there are no 'foreign ownership' hurdles that would have to be cleared at the National Economic Council (NEC)/Cabinet level in any case. Another high-level food retail executive, speaking to Tribune Business on condition of anonymity, said of the proposed Super Value-City Markets tie-up: "If they decide to go with him, it will be good for Junior [Mr Roberts], and probably allow him to control 60 per cent of the market. "It raises monopoly issues, but there are no competition laws or issues here." While Super Value is unlikely to be interested in City Markets' Eight Mile Rock outlet, given that it has no existing presence in Grand Bahama, any deal would likely give it leasehold interests in four store sites on New Providence - Harbour Bay, Cable Beach, Prince Charles Drive (Seagrapes) and South Beach. Combining those with Super Value's existing 10 stores would give the company 14 locations across Nassau, making it the mass market supermarket leader by far. Yet it would be by no means a monopoly, even with Robin Hood's previous disappearance from the market. Its main competition would come from AML Foods' various formats and Phil's Food Services, all of which are more in the destination food store business, and the various low-cost, budget neighbourhood food store chains. Mr D'Aguilar said that while consumers might find the 'sameness' of pricing in an enlarged Super Value chain an issue, "you can't discount the convenience of so many stores close to home". While it is unclear whether Super Value would retain all the existing City Markets locations, given that the two chains both have stores at Cable Beach and on Prince Charles Drive that are in close proximity, the AML Foods chairman said doing so would likely "cannibalise" Mr Roberts' existing top-line sales to some extent. "He's going to be continuing stores that were already operating," Mr D'Aguilar told Tribune Business. "He's going to stock out those stores and cannibalise a little of himself, but in order to preserve market share he's probably wise. As a consumer I'd be slightly worried, as you have to go to these locations that all may be charging the same price." The Bahamian food retail industry has long been viewed as ripe for consolidation, observers believing the estimated $500 million per annum market has contained too many retailers with too much product chasing too few consumers, especially at a time when the recession has slashed disposable incomes. Robin Hood exited the market earlier this year when it closed its remaining store at Tonique Williams-Darling Highway, a move that saw some 60 jobs lost. The financially-stricken City Markets was long seen as the next player to go, with expectations that its exit would remove the last remaining over-capacity in the Bahamian food retail market. It is unclear, though, whether that over-capacity will be eliminated if Super Value retains some, or all, of the remaining City Markets locations.