An important step on the way to a compromise: Edeka and Rewe, some of the markets from Kaiser’s Tengelmann. Now it depends on the price.
In the struggle for the future of the supermarket chain Kaiser’s Tengelmann, with about 15 000 jobs, the two bidders is a major obstacle. Rewe and Edeka, have agreed on the division of the branches, as the spokesman for both companies confirmed. This was considered to be the most difficult point in the negotiations.
An element of uncertainty but there is still: The purchase price needs to be negotiated. To do this, auditors are currently determining the value of the about 400 remaining stores in Berlin, Bavaria and North Rhine-Westphalia. Both the sum paid by Edeka for the entire branch network to the current owners, keeping that in mind as well as the amount for the Edeka in a second step, a part of the rival Rewe. It is realistic that both sides agree within two weeks to a Treaty, it said.
Rewe wanted to avoid that Edeka is too powerful
Tengelmann, Edeka and Rewe had already reached an agreement two weeks ago, in one of former Chancellor Gerhard Schröder (SPD) – led conciliation procedure on the basic features of a compromise. Here, Edeka and Rewe have agreed that in Berlin stores with a sales volume of about 300 million euros will go to the retailer, Rewe, and this in turn, of his suit against the Ministerial approval for the Takeover of Kaiser’s Tengelmann by Edeka. Currently, the court rests method.
Rewe should not to be made already at the beginning of the arbitration it clear that the company alone to a compensation in money. Rather, it is to avoid that the competitor Edeka is too powerful. Also, Rewe had complained against the Ministerial approval with the Federal Minister of Economics Sigmar Gabriel (SPD), in spite of the warnings of competition, a Takeover of Imperial enforcers’s Tengelmann by Edeka wanted to enable.
Therefore is expected to have Rewe now, and is not economically depressed small stores, or with those which are soon to be the lease expires. Moreover, Rewe is likely to want to risk that an agreement will later be overturned by the Federal cartel office. The authority has already introduced recommendations in the conciliation proceedings.
Strong dwarf in the Metropolitan areas of Berlin and Munich
Compared with Edeka or Rewe, the supermarket chain Kaiser’s Tengelmann is a dwarf. The company as a takeover object is, nevertheless, interesting to its strength in the greater Berlin and Munich areas. Kaiser’s Tengelmann operation at the end of last year, 418 branches in Germany and generated almost 15 300 employees and a turnover of 1.78 billion euros. Most of the shops – a total of 187 – the beginning of the year in Munich and upper Bavaria. In the Metropolitan area of Berlin, the supply chain operations, a further 124 super markets. Meanwhile, it should be, however, a few less.
The family-owned company is one of the oldest trading companies in Germany, whose beginnings dates back to the year 1876. But the losses accumulated since the turn of the Millennium to more than 500 million euros.
more than two years Ago had sealed Tengelmann’s owner, Karl-Erivan Haub of the sale of the entire network to Edeka and Rewe had the Look. The Federal cartel office vetoed the plans, but Economics Minister Gabriel overruled this with a special permit. In contrast, Rewe moved before the court, in the summer, the judge stopped the merger.