Business · Companies · 11 hrs ago

Germany approves Rewe purchase of 38 Tegut supermarkets

Germany approves Rewe purchase of 38 Tegut supermarkets

Germany approved Rewe’s purchase of 38 Tegut supermarkets as Migros withdraws from German retail.

Rewe had sought to buy 40 stores, but it cannot take over two in Marburg and Schlüchtern for four years.

The competition authority said the limits addressed concerns that Rewe could become too strong in those local areas.

Rewe’s purchase adds less than 0.2% to its national buying volume, according to the authority.

Four major groups already account for more than 90% of German grocery sales, leaving food makers with relatively few large retail customers.

The authority said the market is highly concentrated but concluded this particular deal would not significantly weaken competition.

Edeka and small-store chain Tante Enso are also taking Tegut locations, while what happens to the remaining stores is still unclear.

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What people are saying

Andreas MundtHead of Germany’s Federal Cartel Office
The fact is: high concentration alone is not enough under competition law to prohibit a merger.
via Handelsblatt
With this, we prevent competition conditions for consumers in the affected regions from worsening significantly.
via Handelsblatt
Peter MalyRewe Group executive board member
The decision creates clarity and planning certainty for all involved.
via cash.ch