In the course of breaking up the Real product chain, competitor Edeka would like to take over up to 72 locations. The Cartel Office has no concerns about 44 branches, but Edeka’s power could become too great for the remaining 28.
The Federal Cartel Office has raised concerns about the takeover of 28 Real branches by Germany’s largest grocery retailer, Edeka. She feared a “significant impediment to effective competition” for consumers in the affected regions if the retail giant were to come into play at these locations.
The competition authority announced on Wednesday. You have communicated this to Edeka and the Real owner SCP and are now in talks with the companies about possible ways to solve the competition problems.
The Russian financial investor SCP had acquired the ailing hypermarket chain Real with its around 270 stores from Metro last year in order to break up and resell it. Market leader Edeka wants to take over up to 72 locations of the hypermarket chain in the course of the break-up of Real.
Real owner remains optimistic
However, it was clear from the start that the Federal Cartel Office would take a close look at these plans because of the trading giant’s market power. Concerns about the competitive situation for consumers are only one side of this.
The Cartel Office is also concerned about the consequences of the takeover for the retail giant’s suppliers.
In order to dispel concerns, SCP is offering to sell part of the Real locations to medium-sized grocery retailers, reported the Cartel Office.
The Real owner SCP was optimistic about the sale of a larger number of branches to Edeka, despite the objections of the competition watchdog. “We note that the Federal Cartel Office sees no sales concerns for 44 of the 72 locations registered by Edeka,” said a statement from the financial investor.
Kaufland takes over 92 branches
Constructive discussions are already taking place on the concerns expressed by the Federal Cartel Office. SCP is “optimistic with regard to the overall process” and hopes to be able to give the employees complete clarity soon. Edeka did not want to comment on the events because of the ongoing proceedings.
The deadline for a final decision by the Cartel Office is March 22nd. In December, the large-scale discounter Kaufland received the green light from the competition authorities to take over up to 92 Real stores.
The Globus supermarket chain received approval for the acquisition of up to 24 Real stores.