Thursday, July 21, 2016

Edeka-Tengelmann fusion in the balance: Gabriel and OLG beharken continued – n-tv.de NEWS


 Economy

 


 Thursday, July 21, 2016

 
 
 


 
 Has Economics Minister Gabriel provided the necessary papers to the merger of Edeka and Tengelmann available to all parties? A court has their doubts and keeps the department chief of partiality. The struggles.

 


 
 

In the dispute with Economy Minister Sigmar Gabriel on the special permit for the merger of supermarket chains Edeka and Kaiser’s Tengelmann, the Higher Regional Court of Dusseldorf is insistent. The Kartellsenat reaffirms loudly in a decision of 20 July – which is also present Reuters and n-tv – the concern, Gabriel had been biased in its decision for the ministerial approval. Gabriel disagreed in the “Sueddeutsche Zeitung” of renewed criticism of the OLG. “If I was caught, then the question is how can I avoid the way in employment companies or in unemployment of 16,000 people,” he said, according to a preliminary report.

It says further, according to the Ministry of Economy it was at the points raised by OLG meeting the end of 2015 just about gone, the requirements for merger permission to inform the heads of the company -. saving the jobs

in the OLG decision states Gabriel and his officials had in December an elaborated by Edeka lawyers paper in which objections to a takeover bid of Edeka Rewe competitors were raised, not where other parties note. Even officials of the Ministry might have had in December further confidential contacts with Edeka, the Senate criticized. A court spokesman declined to not comment because the matter raised by the decision to a “procedural internal process”.



Final jury is still out

The Higher Regional Court of Dusseldorf had the special permit Gabriel for explains mega merger in the grocery trade in an urgent decision on July 12 to be illegal and they initially overridden. The final verdict is still pending. Gabriel did “may not decide to grant the permission, because its behavior (..) the concern of his partiality and lack of neutrality is founded,” it said in the urgent decision. The Minister had rejected most criticism and announced legal action.

The Senate had evaluated further acts of Economic Affairs for ministerial approval process, it is now more in the decision. Gabriel had “led to the exclusion of all other parties to the ministerial approval process a total of two conversations with the person in charge of Edeka and Kaiser’s Tengelmann” in December 2015 declared the judge. But in the files of the Ministry itself would nullify notes on the schedule and content. It was therefore unclear whether Gabriel had individual meetings with the CEOs of Edeka and Tengelmann, Markus Mosa and Karl-Erivan Haub out, or whether officials of the Ministry were present.



discussions were how kept secret?

This does not alter the assessment of the Court: “For the resolution adopted by the Senate apprehension of bias” it was “no relevance whether in addition to the Federal Minister and the process leading officials (…) took part in the talks” , Because the fear of partiality resultiere from the fact that Gabriel had held talks about compared with Rewe secret.

In addition, Edeka CEO Mosa did the Minister on 1 December passed a six-page document, one in the lawyers oppose had listed offer of Rewe for Kaiser’s Tengelmann. “Neither the minister nor his process leading officials – as it would have been their procedural obligation (..) – timely features that either the concerned Rewe and other interested parties (..) where the lawyer drafting (..) in copy note is or at least this (..) are taught. “

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Also would be in the further evaluation of the records of the Ministry clues to suspect revealed that Ministry officials with knowledge Gabriel “had confidential contacts with leaders of the Edeka” also on 2 December and 21 December. In addition, was “the timetable for the announcement of the addition to provisions for ministerial approval” to the proceedings with the Edeka CEO been discussed confidentially.

The Bundeskartellamt had the largest German supermarket chain Edeka prohibited the merger. Gabriel had then given the green light under certain conditions for the controversial merger in March and thus undermined the veto of the Authority. By contrast, among other things, the Edeka competitor Rewe had complained before the Düsseldorf court. Rewe had even offered for Kaiser’s Tengelmann, was not come to the train.

  Source: n-tv.de
 


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