Germany’s competition watchdog has reaffirmed the May deadline for its decision on Edeka’s proposed acquisition of Tengelmann’s Plus discount chain.
Go deeper with GlobalData
Under a deal struck in November, Edeka will take a 70% stake in a joint venture that will operate its Netto discount outlets and Tengelmann’s Plus stores. Tengelmann will hold the remaining 30%.
After Germany’s cartel office raised concerns that the merger would restrict market competition, the watchdog said it would need more information on the deal before coming to a decision.
The original deadline for a decision was 28 April. This was then extended to 16 May and local reports have suggested further delays.
According to a report in Financial Times Deutschland, which cited “company sources” at Edeka and Tengelmann, the cartel office is likely to take “longer than expected” to come to come to a decision.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, when contacted by just-food today (29 April), a spokesperson for the Bundeskartellamt reaffirmed its 16 May deadline.
“The official deadline for a decision is in mid-May,” the spokesperson commented. “We are considering the companies’ comments.”
In defence of the merger, Edeka and Tengelmann reportedly told the watchdog yesterday that they would create 3,000 new jobs.
