During a conversation with Jana Schimke (German politician for the CDU in the constituency of Dahme-Spreewald) Christoph Freitag, the director of BOGK, had the opportunity to discuss the planned take-over of the Tengelmann supermarkets by Edeka. The German Minister of Economic Affairs Gabriel approved this take-over with a so-called ministerial approval. A deciding factor in the approval was the continuation of some 16,000 jobs and the working conditions.
According to the politicians the additional conditions are sufficient to prevent the exploitation of the increased power of Edeka after the take-over. And the adjustments of the conditions are straightforward and therefore allowed.
The German Federation of Fruit, Vegetables and Potato Processing Industry (BOGK) is more critical. With the disappearance of Tengelmann and the increased economic strength of Edeka the pressure on suppliers will increase further. “German supermarkets will soon only offer what the purchasers of the five main retail chains want to buy,” fears Christoph Freitag. The BOGK feels justified in its concerns over the "great scepticism" surrounding the take-over of the Federal Agriculture Minister Christian Schmidt. And Ralph Brinkhaus, vice-president of the union, stated after the ministerial approval that maintaining the long-term competition appears to be more important than short-term preservation of jobs.
Source: gabot.de