Rewe, the German retailer, has agreed to buy Tengelmann's Plus discount chain in the Czech Republic.

The deal, which was struck for an undisclosed sum, was announced today (3 March) and brings to end months of speculation over the stores.

Rewe has bought the 146 Plus stores in the Czech Republic and is said to be looking to merge the business with its own discount chain, Penny.

"I firmly believe that our stores and employees will be in the best of hands," said Tengelmann managing partner and CEO Karl-Erivan W. Haub.

The deal, which is still subject to approval from Czech anti-trust authorities, will create a company of 317 stores that generates over EUR1.2bn (US$1.8bn) in sales.

"Due to its favourable geographical location, the Czech Republic is of great strategic importance," said Rewe CEO Alain Caparros.

Rewe runs 96 Delvita supermarkets in the Czech Republic, as well as a 181-strong chain of Billa stores.