Trade: Tengelmann acquisition: Gabriel increased pressure on Edeka – Augsburger Allgemeine

Sigmar Gabriel tightened the conditions for a takeover of the supermarket chain Kaiser’s Tengelmann by Germany’s biggest grocer Edeka.

economy Minister Sigmar Gabriel (SPD) announced in a letter that he would require a reversal of the merger, if Edeka did not fulfill the conditions set for a ministerial permit. Earlier, the “Handelsblatt” and the “Lebensmittel Zeitung” reported the letter to the parties.

The ministry said on Tuesday upon request, the conditions were “concrete” because of the comments received the company. The companies involved have now until February 29, time to react. After their evaluation Gabriel final decision.

 

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acquisition of Kaiser’s Tengelmann by Edeka is disputed

In stakeholders the new edition was seen primarily as an attempt to make the Ministerial approval legally “watertight”, after Rewe threatened with a lawsuit would have. The actual takeover will not thereby made more difficult, it said.

The acquisition of Kaiser’s Tengelmann by Edeka is controversial, since thus the market position of Germany’s largest grocer will be further strengthened. The Bundeskartellamt had therefore prohibited the transaction. The Monopolies Commission had warned in a report before it. Edeka and Tengelmann then requested a ministerial permit to overturn the Cartel vote.

Gabriel appeared ready when the this step of obtaining of the 16 000 jobs at Kaiser’s Tengelmann and securing participation and collective bargaining coverage for employees supermarket chain could be guaranteed in the long term.

Edeka must therefore assure for ministerial approval the takeover nearly all 16 000 employees at Kaiser’s Tengelmann, form legally secure collective agreements, the markets continue five years on their own, and operate the meat plant Birkenhof three years , (Dpa)

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