Rewe given green light on Adeg bid

Following the transaction, Rewe would increase their share of Adeg from 24.9 per cent to 75 per cent and thereby have sole control of the company.

 Rewe notified its intention to acquire
control of ADEG to the commission in April. Now it have been given
the all clear to purchase Austrian super- market chain Adeg by the
European Commission – though with conditions. However the commission
expressed concerns that the combined market strength of the company
"could lead to higher prices for everyday consumer goods” in
certain Austrian regions.

Rewe proposed selling outlets in the
relevant regions and this commitment is believed to have alleviated
the Commission’s concerns, as they decided that the acquisition
would not harm competition in the European Economic Area.

Rewe is the operator of food stuffs
retail chains such as Billa, Merkur, Bipa and Penny Markt. The
company is currently the Austrian market leader – cornering 30 per
cent of the market – but the purchase will boost this figure with
Adeg’s 5.5 per cent market share. With the takeover, Rewe will have
a market share of around 36 per cent, compared with their next
biggest competitors Spar and Hofer, who have a combined market share
of 53 per cent.