“Alternative paragraph breaks away”: Authority is Edeka not super horny – n-tv.de NEWS

"Alternative paragraph breaks away": Authority is Edeka not super horny – n-tv.de NEWS

business
 

 Tuesday, February 17, 2015

 
 
 

 
 Market leader Edeka wants to take over 450 Tengelmann branches. But the competition watchdog raise a warning finger. Now, both sides will have to come up with something, should not fail the deal.
 

 

The proposed acquisition of dozens Tengelmann markets by the industry leader Edeka encountered in the competition watchdogs to concerns. “The project would, according to previous investigations of the Bundeskartellamt lead to a compression of the already highly concentrated market structures, especially in Berlin, Munich and individual major cities in North Rhine-Westphalia,” President Andreas Mundt said a first preliminary assessment of the Authority.

Also in the procurement of branded goods in particular would the protrusion of the leading group which lies next to Edeka from competitors Rewe and Schwarz group with Kaufland and Lidl over the competition continue to rise. Because the producers break a remaining alternative outlet outside this group away, he criticized. Apparently both chains can only comprehensive concessions – such as the sale of markets to competitors – can save their merger plans yet. A Tengelmann spokeswoman said the company had received a letter with the concerns of the Cartel and check it now. Edeka declined to comment.

In many cases, only two regional utilities

The proposed acquisition of Kaiser’s Tengelmann by Edeka had early October last year caused a lot of criticism in the industry. The Cologne competitor Rewe had even threatened to sue. Edeka, already the number 1 in the food retail sector would thus expand its market position even further.

This also provides the Bundeskartellamt critical. In many of the affected municipalities or regional markets would Edeka and Rewe each case, the discounter Netto and Penny remain only two local shops, it is said in the statement. This would be subject to market share gains by Edeka in a takeover of Kaiser’s Tengelmann in the problematic markets, especially in Berlin and Munich, as a rule, far more than ten percent.

Tengelmann saw no chance for their own supermarkets

Edeka and Tengelmann can now submit their comments by 26 February and, where appropriate, make proposals for obligations or commitments. Whether the transaction could be possibly approved subject to conditions, the Bundeskartellamt at this stage can not judge, it said. The deadline for a final decision will expire in the current state on March 6, 2015. However, the parties may apply for an extension of time.

More about

The Tengelmann Group family of entrepreneurs Haub had after a long examination for a sale of its approximately 450 supermarkets with approximately 16,000 employees decided to focus entirely on their retail DIY chain Obi and textile merchant Kik. For the supermarket business accounts for years losses. Chef Karl-Erivan Haub had declared at the announcement of the sale to see no future. Because Kaiser’s Tengelmann is too small compared with its competitors in order only on the market to have a chance. The market share had Tengelmann then given as 0.6 percent.

Also in the sale of Tengelmann discounter Plus at Edeka in 2008, the competition authority had initially raised much concern about the takeover but then after a lengthy approval process still released under considerable stipulations. More than 300 Plus markets had to be sold to other competitors at the time. Since then, however, the concerns of the Cartel because of market concentration in the food trade are more likely to have grown. For a sector inquiry into the authority found last year that Edeka, Rewe, Aldi and Schwarz Group unite already generates around 85 percent of sales in coming.

  Source: n-tv.de
 

  Theme