German department store operator Karstadt-Quelle has said it is to go ahead with its planned joint venture with German grocery retailer Rewe.

Under the joint venture, which will be 74.9% owned by Kastadt-Quelle and 25.1% by Rewe, the grocery retailer will operate the grocery sections in 72 of Karstadt-Quelle’s department stores, reported Dow Jones International News.

Recent media reports had suggested the planned joint venture might be in jeopardy as the two firms were struggling to agree on various aspects of the new company.