German retailers Edeka and Tengelmann have been given a further three weeks to allay concerns that the merger of their discount businesses could hit competition in the country.
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Germany’s Federal Cartel Office has pushed back the deadline for its decision on whether to approve the companies’ move to combine their Netto and Plus businesses.
A spokesman for the Bundeskartellamt said the deadline had been extended from 28 April to 16 May.
“In roughly 100 local markets, we found a strengthening of Edeka’s market position,” the spokesman told just-food. “The companies will have to come up with some solutions to clear up these problems.”
Under a deal struck in November, Edeka will take a 70% stake in a venture that will run its Netto discount outlets and Tengelmann’s Plus stores.
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By GlobalDataThe venture will operate around 4,200 stores in total, generating annual sales of about EUR11bn (US$17.5bn).
Tengelmann, which will hold a 30% stake in its venture with Edeka, has been searching for a partner to breathe new life into its 2,900 Plus stores in Germany.
Officials at Edeka and Tengelmann could not be reached for immediate comment.
