Another setback for Edeka's acquisition of Kaiser's Tengelmann

Another setback for Edeka's acquisition of Kaiser's Tengelmann

The German Monopolies Commission has advised against Edeka's intended acquisition of Kaiser's Tengelmann. The commission was asked to examine whether the Federal Ministry of Economic Affairs and Energy could re-evaluate the decision of the German Competition Authority regarding the acquisition.

Acquisition battle has raged for more than a year

The Competition Authority blocked the take-over in April, as it felt regional supermarkets and other stores in Berlin, Oberbayern and North Rhine Westphalia would stand to considerably worsen their competitiveness. The Monopolies Commission now comes to the same conclusion.

 

In an attempt to circumvent the Bundeskartellamt's decision, both supermarket organization implored the German Federal Ministry of Economic Affairs and Energy to allow the merger anyway. In total, Edeka and Tengelmann have feuded with the authorities over this proposed acquisition for more than a year.

 

The recent advice has now added a new chapter to the soap surrounding Edeka and Kaiser's Tengelmann. Alongside Rewe, Aldi, Schwarz-Gruppe (containing Lidl and Kaufland), Edeka is one of Germany's four largest supermarket organization and it has been trying to absorb Kaiser's Tengelmann's supermarkets in three regions (Berlin, Munich, Rhine-Ruhr) for several years. The chain currently has 451 stores and 16,000 employees.

Tags: