Mülheim an der Ruhr, July 1, 2008 – After an inquiry that has continued since the end of 2007 into the proposed merger between Plus Warenhandelsgesellschaft mbH and Netto Marken-Discount GmbH & Co. oHG the German anti-trust authority, the Bundeskartellamt, has today announced its decision.
The merger between the two companies has been given the green light provided that the following conditions are first fulfilled:
1. All Plus stores in market share-critical territories to be sold by their owner Tengelmann
2. Shares in the new joint company to be split 80 % EDEKA and 20 % Tengelmann
3. No joint purchasing deal for Kaiser’s Tengelmann.
Tengelmann Group Managing Partner Karl-Erivan W. Haub commented on this decision as follows: “In the interests of our employees we are glad that after more than six months the Bundeskartellamt has come to a decision. The last half year has been an unbearable situation for our staff. Now at last clarity prevails. The number of branches to be sold to meet the condition attached to the merger by the Bundeskartellamt is higher than expected.
"We have already begun talks aimed at disposing of these branches in a manner which preserves their competitiveness and above all safeguards jobs. We are confident that we shall be able to meet this condition within the specified six month period. The merger can then be completed by the beginning of next year at the latest.
"Unfortunately the Bundeskartellamt has not conceded our wish to continue to play an active part in the joint undertaking. The 80:20 share split required by the authority turns the planned partnership virtually into a sale, which was not our objective. We would have preferred a greater degree of discretion.
"The fact that we are prohibited from proceeding with the joint purchasing deal between Kaiser’s Tengelmann and EDEKA is a bitter pill to swallow. Even though our supermarket business has been very successful in recent years, by cooperating with EDEKA we would have been in a position to safeguard our purchasing more effectively for the long term. Nevertheless with our highly motivated team we shall make every effort to ensure that our Kaiser’s and Tengelmann stores continue to develop successfully. "