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01.12.2024 | 🇩🇪 German competition authority
The Bundeskartellamt, Germany's antitrust authority, has cleared the merger plans of Konsum Dresden eG with EDEKA Nordbayern-Sachsen-ThĂĽringen eG, allowing Konsum to join the EDEKA group. The authority determined that the merger would not meet the criteria for prohibition, as consumers in the region will still have ample alternatives, including strong competitors like Kaufland, Lidl, and Rewe.
Konsum Dresden operates around 30 food retail outlets in the Dresden area and reported a turnover of approximately 110 million euros in 2023. The Bundeskartellamt assessed the merger as a concentration subject to merger control, viewing the EDEKA group as a single economic entity due to its extensive network of stores and significant market presence.
The EDEKA group is Germany's leading food retailer, with around 11,000 stores and a turnover exceeding 70 billion euros in 2023. The merger is expected to enhance EDEKA's market share to about one-third in the affected region, positioning it competitively against the Schwarz Group and Rewe.
The authority's investigation included an analysis of customer data to define the relevant market and assess competition. It found that the merger would not significantly impede competition, as EDEKA would still face considerable competitive pressure in the region. The procurement side of the merger was also evaluated, with the authority concluding that EDEKA's market share increase would be minimal and not raise concerns under merger control rules.
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