Thursday, March 17, 2016

Edeka buys Tengelmann – the expected customers and employees – SPIEGEL ONLINE

Sigmar Gabriel is visibly irritated when he appears before the press at noon and remarked the controversial takeover of supermarket chain Kaiser’s Tengelmann by the retail giant Edeka. The Cartel Office had the merger nearly a year ago banned – for fear of an obstacle to competition. But the economy minister is now over it.

“I have permission for the merger granted”, says the head of the SPD. The press conference is brief, a number of questions answered by the Minister only with a curt “Yes” or “No”.

It does not fit Gabriel to face again the criticism. Already in the past few months he had been violently tackled for his plans to approve the merger. This did not change anything, as he runs for the acquisition earlier this year intensified still further.

What is the permission for the food industry? And the consequences of the merger for suppliers, customers and employees? . Answers to frequently asked questions

Why should Gabriel merger ever allow

The Federal Minister may overrule a No of cartel investigations by law with a so-called ministerial approval? – when “the overall economic benefits” outweigh the restriction of competition or the concentration is justified by an “overriding public interest”. The companies concerned must ensure submit an application

According to the federal government, there was so far – including Edeka – 22 cases. Nine times the license was granted, six said a Minister No, in seven cases attracted the company its request back. The ministerial approval is a controversial instrument. Critics say it favors economic arbitrariness.

What does the takeover of the customers?

Gabriel himself promises that the deal for consumers have no consequences is , Customers need not fear higher prices, says the Minister. Edeka will play its to increases in market power rather with the suppliers, that is, press the purchase prices.

The German Monopolies Commission sees it differently. According to her, is weakened by the takeover of the competition in a number of locations. “This should make rising prices and reduced choice for the customers go hand in hand,” Commission chief Daniel room had warned in January. On Thursday afternoon Room resigned in protest against Gabriel ministerial approval.

What will happen to the employees of Tengelmann?

Around 16,000 people are currently working for Tengelmann. At least they must first fear no job-cutting. For Gabriel has his ministerial authorization subject to conditions:

Edeka allowed the 451 Tengelmann branches for five years does not pass them on to independent Edeka retailers and must exclude compulsory redundancies in this period. Even workers’ rights such as participation and collective bargaining coverage remain unchanged at this time. After this period of two years employment protection for workers apply if their branch is taken.

There go to him especially to secure jobs for all those who “do not belong to the earners and it already in the labor market often not easily have “, the SPD leader praises himself

the Greens disagree. Gabriel silent about the concerns that were at risk by the merger jobs at suppliers and competitors, they say. For the employees of Edeka there are no guarantees that they will not dismiss and own locations are closed to make the merger with Tengelmann profitable.

What does the merger for the food industry?

The German Farmers’ Association fears that worsen competition within the food chain. Edekas market power is now even bigger, they complain. The supermarket giant is likely to try the already beleaguered farmers abzuknöpfen their goods at lower prices.

Also, Edeka competitor Rewe considers itself disadvantaged by Gabriel ministerial approval. The company wishes to file a complaint against the decision at the Higher Regional Court of Dusseldorf. Gabriel gives himself unconcerned. When asked how the government would deal with a lawsuit by Rewe, he only says: “We will win.”

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