Federal Cartel Office prohibits the acquisition of Kaiser's Tengelmann

The German Federal Cartel Office prohibited the acquisition of Kaiser's Tengelmann by the supermarket giant Edeka. So Edeka cannot incorporate the 450 branches of Kaiser's Tengelmann in Germany. The Federal Cartel Office announced as justification that the project would have led to a significant deterioration of competition in some regions. The acquisition would have also led to significant problems in the area of acquisition, the Cartel Office announced.

Andreas Mundt, President of the Federal Cartel Office

“Withdrawal would have led to significantly reduced choices”
Due to poor prospects, the Tengelmann Group wanted to sell its stores in Bavaria, Berlin and North Rhine-Westphalia to Edeka on the 30 June 2015. However, according to the President of the Federal Cartel Office, Andreas Mundt, the “withdrawal would have let to a significantly reduced choices for the consumers on the spot”. The disappearance of an important competitive force would offer the remaining competitors also space for future price increases, the Cartel Office explains further.

Disappointment at Tengelmann and Edeka
Kaiser's Tengelmann and Edeka were disappointed by the decision. However, the takeover stop by the market guardians is not legal yet. All participants can still lodge a complaint at the Higher Regional Court in Düsseldorf. According to information from the “Manager Magazin online”, Edeka and Kaiser's Tengelmann are going to prepare an application for “ministerial permission”. If this request was be granted, the Federal Minister of Economics could allow the merger of Edeka and Kaiser’s Tengelmann despite the ban by the Federal Cartel Office. However, according to a spokeswoman of the Federal Minister of Economics Sigmar Gabriel (SPD), a ministerial permission “does not even enter the equation”.

For more information:
Press release from Federal Cartel Office (in German)