Lebensmittelhandel: Edeka darf 178 Tegut-Supermärkte übernehmen

The German food distributor Edeka is allowed to acquire 178 stores from the Tegut supermarket chain, according to the Federal Cartel Authority in Bonn. The authority announced this after Migros, a Swiss cooperative, had announced its intention to sell Tegut in March. Edeka initially intended to purchase 202 of the around 300 stores in the chain and continue operating them.

However, competition authorities raised concerns, fearing that Edeka's market share in certain regions might become too dominant, thereby hindering effective competition. Consequently, a full takeover in the planned form was rejected. Edeka therefore committed to not acquiring 24 of the planned 202 Tegut locations for a period of four years, stating that this would prevent any deterioration in consumer welfare in the affected regions.

The authority published a list of the stores Edeka is allowed to acquire, most of which are located in Hesse, Bavaria, and Thuringia. This includes the Tegut logistics center in Hünfeld-Michelsrombach, the bakery Herzberger, and the 41 employee-free "Teo" mini-stores. Edeka responded positively to the Cartel Authority's decision, stating that it was good news for employees and people in the affected regions.

With the acquired stores, approximately 3,700 employees would have a clear future perspective. The acquired stores will gradually be integrated into the cooperative Edeka Group. Some of them will in the future be operated under the Netto Marken-Discount brand. At the same time, the company regretted having to forgo a significant number of locations.

The Federal Cartel Authority had intensively examined the planned takeover since March, according to its own information. The background is the competitive environment and increasing concentration in the German retail trade. According to the authority, Edeka, Rewe, the Schwarz Group (Lidl and Kaufland), and Aldi (North and South) together account for more than 90 percent of the nationwide sales by 2025.

However, a cross-market collective market domination by the leading retail companies has not been detected, said the Cartel Authority. The decision for Rewe is still pending. Other German retail chains also want to expand their store networks with Tegut stores. The smart-store chain Tante Enso received approval for 36 stores in June.

The Rewe Group also wants to acquire up to 40 stores, but the decision is still pending. The Cartel Authority also expressed competition concerns in this case and Rewe subsequently submitted a commitment offer to remedy the situation. The review period for this procedure has been extended until the end of October. What happens to the remaining Tegut stores is unclear.

Tegut was founded in 1947 in Fulda and has been part of the Migros Group since 2013. The chain operates in six German federal states, with the majority of stores located in Hesse. Migros employs around 7,500 people at Tegut. The brand will be discontinued.