Rewe has acquired a minority stake in German supermarket chain Wasgau.

The retail giant, which has around 11,000 stores in Germany, has bought 25.1% of Wasgau, a regional firm based in the town of Pirmasens on the French border.

Rewe said that it acquired most of the shares from Wasgau’s majority investor Otmar Hornbach.

Wasgau runs 90 supermarkets and seven cash-and-carry outlets. The retailer also acts as a wholesaler for over 100 independent retailers. In 2010, Wasgau generated EUR480m in sales.

Rewe said the deal, which remains subject to the approval of local competition authorities, will also see it supply Wasgau with goods and services from 2016. Wasgau’s present deal with Markant expires in five years time.

Hornbach, who holds over 53% of Wasgau, said Rewe was the “ideal co-operation partner” to help the retailer become a “strong and independent regional trading company”.

Wasgau CEO Alois Kettern said the deal with Rewe, including the move to source goods from the company in 2016, was vital for the retailer’s future.

“Markant has been a reliable partner for us in the past which is why we will of course be contractually satisfying the existing cooperation. However, it is now necessary to lay the foundations for a sustainable future of Wasgau in an increasingly tight competitive arena. The management board therefore explicitly supports the long-term strategic direction of the principal shareholder and is convinced that the cooperation with Rewe will make a very important contribution here.”

Rewe CEO Alain Caparros said he “looked forward” to co-operating with Wasgau and said there were “parallels” in the “corporate culture” of the two companies.