German regulator plans to block merger of Netto, Plus stores

The two companies last year said they plan to merge their discount supermarket chains in a joint venture operating 4,100 stores, in which Edeka would hold 70 percent.

The German Federal Cartel Office warned
that it plans to deny approval of German retailer EDEKA's plans to
merge its Netto discount supermarket chain with Tengelmann's Plus
stores.
'EDEKA would have a dominant market
position following the merger,' the regulator said in a statement.
EDEKA is the market leader in Germany's food retail industry, holding
a 25 percent share, the regulator said. Some 90 percent of the
industry are controlled by the country's six biggest food retailers.
The Cartel Office said EDEKA and
Tengelmann can make a statement in favor of the merger by April 17,
and a final decision on the matter will be made on April 28.