Rewe Group wants government to disapprove supermarket merger

Rewe Group wants government to disapprove supermarket merger

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TheGerman diversified retail and tourism co-operative group Rewe wants to dissuade the Minister for Economic Affairs Sigmar Gabriel to issue a special permit against the controversial merger of its competitors Edeka and Kaiser’s Tengelmann. Rewe does this in a statement to the Ministry of Economy against a ministerial permit for the supermarket union and reserves a path in front of the Higher Regional Court (OLG) Dusseldorf. “A ministerial approval can not be granted,” it says in the letter, as reported by Reuters on Wednesday.

The Rewe lawyers explain in the opinion, the conditions for a ministerial approval had not been met. So Rewe had submitted a binding offer for the acquisition of Kaiser’s Tengelmann. There had been a genuine alternative to Edeka offer. The proposal by Gabriel to maintain employment are inadequate. A permit would be “in a complaint procedure by the OLG Dusseldorf aside,” the company said.

Gabriel had already announced plans to approve the acquisition of Kaiser’s Tengelmann by Edeka conditionally. Edeka must make commitments to secure jobs, among other things. The 16,000 Kaiser’s Tengelmann employees should be retained by the company and this would be received by the council, the Minister stressed. Edeka had indicated the need to meet Gabriel  and declared that employees of Kaiser’s Tengelmann have now a prospect of a secure future.

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