German retailer Edeka's proposed takeover of Tengelmann supermarket chain Kaiser's now looks unlikely, after both retailers failed to convince Germany's Monopolies Commission to give it the green light.
The retailers had requested that the commission examine whether the Federal Ministry of Economic Affairs and Energy could re-evaluate the decision of the German Competition Authority regarding the acquisition.
In April, the German competition watchdog announced that it was to prevent Edeka from acquiring Kaiser's.
The watchdog said that if it allowed Edeka to buy the 450 Kaiser's stores, it would negatively affect market competition, particularly in Berlin and the states of Bavaria and North Rhine-Westphalia, adding that the takeover would have had a negative impact on producers and suppliers.
According to Zeit Online, the Monopolies Commission has reached the same conclusion as the watchdog on the merger, which now means that it is unlikely to go ahead.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Maike Baeumer. To subscribe to ESM: The European Supermarket Magazine, click here.
