Rewe has insisted competition in Austria’s retail sector will be unaffected by its planned acquisition of a majority stake in local grocer Adeg.
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The German retail giant’s plan to up its stake in Adeg to 75% has attracted criticism from Austria’s consumer protection minister Erwin Buchinger, who believes the deal will stifle competition.
Late last year, Rewe announced plans to up its stake in Adeg from the 24.9% interest it bought in 2006.
Rewe’s Austrian arm, which includes stores under the Billa banner, is the country’s largest grocery business. The company is preparing its case for the deal to be approved by the European Commission.
“Of course, there are two big players in the Austrian market – Rewe and Spar – but there are the Makro hypermarkets and it is still a highly competitive market,” a spokesperson for Rewe’s Austrian business told just-food.
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By GlobalDataBuchinger has called for Rewe’s move to be referred to Austria’s anti-trust authorities but the retailer was coy over whether it was concerned that the deal could be blocked.
“We cannot really say anything about it at the moment; it is very difficult to say what will happen,” the spokesperson said.
