Court stops Minister’s permission

Acquisitions

Court stops Minister’s permission

Slap in the face for Sigmar Gabriel: the court holds its exception approval for the Takeover of the supermarket chain Kaiser’s Tengelmann by Edeka to be unlawful, and criticised the Minister for the economy sharply.

The Düsseldorf higher regional court has stopped the Minister’s permission for the Takeover of the supermarket chain Kaiser’s Tengelmann by Edeka on a provisional basis. The First cartel Senate evaluated the exemption from Federal Minister of Economics Sigmar Gabriel (SPD) on Tuesday in a preliminary examination in summary proceedings as unlawful.

According to experts, it can delay the enforcement of the prohibition of the proposed merger. This threatens the plans may be.

Gabriel had allowed Germany’s largest food retailer Edeka in March, subject to conditions, to take on the competitors, though, the Federal cartel office prohibited the Acquisition.

Arguments of the judges

In the opinion of the judge, Gabriel would have the permission to give, because he is self-conscious in the process and not the neutral’s conduct. The Minister had led in the decisive Phase of the permit procedure, with Edeka and Kaiser’s Tengelmann secret talks, said the Senate.

Twice it had been in December 2015, “Six-eyes-talks” between Gabriel, the Edeka CEO Markus Mosa and the Kaiser’s-Tengelmann-owner Karl-Erivan Haub.

The editorial recommends

After months of struggle, the Federal Minister of Economics Sigmar Gabriel (SPD) gives the green light for the controversial Takeover of the supermarket chain Kaiser’s Tengelmann by the retail giant Edeka. (17.03.2016)

The competition authorities are, however, the Minister of economy. Under “stringent conditions” may take over the supermarket chain Edeka competitors, Kaiser’s Tengelmann, for the benefit of the employees. (12.01.2016)

Sale at Edeka, or busting, the Outlook for the supermarket chain Kaiser’s Tengelmann. Economy Minister Gabriel will have the last word. Or is there a third option? (16.11.2015)

In addition, the preservation of the rights of employees at Kaiser’s Tengelmann is no so-called public welfare concern, which could justify the Minister’s permission, complained to the judge.

Also, Gabriel’s argument that through his pads, and around 16,000 jobs would be secured, met with the judges to doubt. The Minister said permission was not clear whether the possibility of a merger-related job cuts had been incorporated at Edeka in the decision.

Decision still not final

The decision of the court of appeal, however, is not yet final. The Senate had no right of appeal to the Federal court of justice. But the method is the possibility of non-admission of complaint involved.

The competitor Rewe, welcomed the decision. Edeka and Kaiser’s Tengelmann have set in the Merger plan from the beginning on a path of confrontation with competition regulators and trade unions and a Minister want to force permission. “That in Form and content to doubtful, Minister may permit, are now completed, is a logical consequence of this brutal strategy,” said a supermarket spokesman.

Special permission overturns ban

Gabriel had given to Germany’s largest food retailer Edeka in March, under massive constraints in a green light for the controversial merger. Edeka had to guarantee in return for the receipt of almost 16,000 Jobs at Kaiser’s Tengelmann for at least seven years.

With its special permit revoked Gabriel a prohibition by the Federal cartel office. The competition authorities feared that the merger of the competition in the German food trade limited. Edeka, Rewe, the Schwarz group (Lidl, Kaufland) and Aldi dominate 85 percent of the market.

ul/bea (dpa, rtr, afp)


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