The trading group Rewe has announced that it wants to take over up to 40 branches of the Tegut supermarket chain. As the company announced, a corresponding contract was signed with the Tegut parent company Migros Zurich. A majority of the markets should come from Rewe itself will be operated, the remaining locations will go to the discounter subsidiary Penny. Around 200 of Tegut’s 300 stores will go to Edeka, and Aldi has also expressed interest in individual branches. The transaction is still subject to approval by the Federal Cartel Office.
In March, the Swiss parent company Migros announced its withdrawal from the German market and initiated the sale of Tegut. The company cited tough competition and declining sales in Germany as the reason for the withdrawal. According to Rewe board member Peter Maly, employees in the markets affected by the takeover will be made a job offer. It is unclear how much Rewe wants to pay for the Tegut locations.
Misereor study criticizes the market power of supermarket chains
It is expected that Cartel Office Due to the high market power of the large retail chains, the possible takeover is being closely examined. Experts such as antitrust lawyer Rupprecht Podszun believe it is possible that the authority will ban the takeover in whole or in part.
A new study published by the aid organization Misereor, among others, complains about this Market power of the large supermarket chains. According to Misereor expert Wilfried Süß, the concentration of power means that “companies from the Global South can hardly defend themselves against unfair business.” Entrepreneurs from Asia, Africa or Latin America risked losing market access for their cocoa, coffee or fruit and vegetables if they complained.
EdekaRewe, Aldi and the Schwarz Group with Lidl and Kaufland already control over 87 percent of food retail in Germany, according to the study. Study author Ulrich Müller called for the planned takeover of Tegut branches by Edeka to be banned. “We need greater restrictions on large company takeovers,” said Müller when presenting the study.