Special Report 70
In the view of the Monopolies Commission, the restrictions on competition in the food retail sales and procurement markets are significant. The takeover would have considerable economic significance, given the size of the markets concerned and the turnover of the companies involved. The merger with Kaiser’s Tengelmann would strengthen and consolidate Edeka’s strong market position in the regional supply markets of the German food retail sector. In the procurement markets, the acquisition of Kaiser’s Tengelmann would remove a retail company that has hitherto procured goods partly independently, thereby eliminating a sales alternative for many manufacturers. Edeka’s negotiating position vis-à-vis manufacturers would thus be strengthened. The Monopolies Commission therefore recommends that the ministerial authorisation sought by Edeka and Tengelmann should not be granted. Nor does the Monopolies Commission see any possibility of granting the ministerial authorisation subject to conditions or obligations.