Bundeskartellamt partly clears acquisition of RATIO markets by EDEKA

Yesterday the Bundeskartellamt cleared the acquisition by EDEKA of six self-service stores, a specialist store and five cash & carry markets owned by RATIO Handel GmbH & Co. KG, Münster. The merger project originally included more RATIO markets. Its notification was withdrawn by the parties, however, after the Bundeskartellamt had expressed competition concerns against the acquisition of these outlets. The project, which was re-notified, has now been cleared and is confined to the markets which are considered unproblematic from a competition law perspective. EDEKA will basically acquire outlets in Münster, Ratingen, Stuhr, Trier and Baunatal (self-service stores) and Laatzen, Bochum, Bielefeld, Ratingen and Hagen (cash & carry markets).

Andreas Mundt, President of the Bundeskartellamt, stated: "In view of the high concentration in the food retail sector, the Bundeskartellamt has thoroughly examined the acquisition. As a result of our concerns the project has been modified. Apart from Kaufland, small competitors will now be able to expand their positions in key areas in which EDEKA is active".

An acquisition of all RATIO outlets by EDEKA would have faced prohibition. As in the recent EDEKA/trinkgut proceedings (cf. Bundeskartellamt press release of 29 October 2010) or EDEKA/Tengelmann case (cf. Bundeskartellamt press release of 1 July 2008) the Bundeskartellamt carried out a thorough examination of the sales markets affected and analysed shopping alternatives for the consumer. According to the authority's findings, the acquisition of the self-service stores in Gohfeld, Bielefeld, Osnabrück and Stadthagen would have further strengthened EDEKA's already dominant position in the markets affected.

Equally, the acquisition of three RATIO cash & carry markets in Münster, Osnabrück, and Limburg would have created a dominant position for EDEKA in the food cash and carry wholesale segment, which has to be assessed as a separate market. EDEKA's market shares in this market lay between 90% and 100%. Even a consideration of the competitive pressure exerted at least to some extent by the wholesale delivery sector did not lead to a different result.

Meanwhile RATIO has sold the operation of its self-service stores in Gohfeld and Bielefeld to the trading company Bartels Langness in Kiel. The self-service stores in Osnabrück and Stadthagen, as before them the RATIO outlet in Bochum, have been taken over by Kaufland. The three cash & carry markets in Münster, Osnabrück and Limburg are to be taken over by Brülle & Schmeltzer, an operator of cash & carry markets based in Lippstadt.