Edeka permitted to acquire Tegut stores, some to become Netto

Germany's Federal Cartel Office (Bundeskartellamt) has approved the acquisition of 177 Tegut supermarkets by the retail group Edeka. The decision allows the significant consolidation within the German grocery market to proceed.

In the state of Thuringia, 24 Tegut branches are included in the approved transaction, with five located in Erfurt, four in Meiningen, and three in Weimar. However, the cartel office prohibited Edeka from acquiring five other Tegut stores in Thuringia, citing concerns that Edeka's market share in these specific regions would become too dominant, potentially hindering effective competition. These disallowed acquisitions include stores in Bad Langensalza, Erfurt-Marbach, Geisa, and Heiligenstadt.

The Tegut brand itself is set to disappear as part of the deal. The Swiss Migros Group, Tegut's parent company, announced its withdrawal from the German market earlier this year. The approved Tegut stores will be gradually integrated into the Edeka cooperative network. A portion of these stores are slated to be operated under Netto, Edeka's discount subsidiary.

Further retail consolidation is underway, with the Rewe group also seeking to acquire Tegut stores, a decision that awaits Bundeskartellamt approval. Additionally, ten Tegut stores in Thuringia are expected to transition to the Tante Enso cooperative format, pending regulatory clearance. Currently, Tegut operates 50 stores in Thuringia, and the future of 16 of these remains undecided.