Germany's economy minister has granted Edeka permission to acquire Tengelmann's Kaiser's chain, subject to various conditions.
Key condition is retaining current staff
Edeka and Tengelmann reached agreement for this transaction in October 2014. It was due to be completed by June 2015, but has been held up by objections from the government, competition watchdog and from competitors like Rewe. The economy minister, Sigmar Gabriel, said Edeka must provide guaranteed jobs for current employees for at least five years, and retain all Kaiser's employees for the next 24 months. Other conditions include completing work on a meat processing plant located in Birkenhof.
Helps Edeka achieve wider aims
The acquisition of this 451-strong chain is another step towards Edeka's main goal of continuously increasing its market share in Germany. It plans to open around 200 stores annually, focusing on central urban areas with a growing population.
What could acquired stores look like?
We visited Edeka's E center store in Hamburg to see its latest initiatives and format development. Find out more here.