German watchdog could block Edeka bid
Retail group Tengelmann, which also owns home improvements chain OBI and discount fashion group KiK, said in October it would sell Kaiser's to Edeka. Kaiser's has 451 stores, around 16,000 employees and turnover of 1.8 billion euros ($2.1 billion).
Andreas Mundt, who heads the competition watchdog, said in a statement the takeover would further limit competition in big cities like Berlin and Munich, giving Edeka a market share of more than 10 percent in some places and would also limit competition in purchasing.
The watchdog has looked closely at retail takeovers due to its concerns about market concentration and began investigating the Edeka deal when it was announced.
The retailers have until Feb. 26 to respond to watchdog and could offer concessions such as selling off certain stores. The regulator is due to make a final decision on March. 6.
A Tengelmann spokeswoman said the company was looking into the watchdog's position. Edeka declined to comment.
Tengelmann boss Karl-Erivan Haub has warned against a rejection of the deal, saying it could mean the end of Kaiser's as he saw no prospect of turning around the group as a standalone business.
Edeka, Rewe, Aldi and the Schwarz Group that owns the Lidl chain, all privately owned, already account for 85 percent of the German market in which Kaiser's has a 0.6 percent share. ($1 = 0.8754 euros)
Source: reuters.com
