The German Federal Cartel Office has granted provisional approval to supermarket operator Rewe’s purchase of 38 Tegut locations and two properties, after the group abandoned its bid for two additional sites in Hesse.
An investigation began in April 2026, concluding that the initial proposal risked weakening competition in those areas.
The authority assessed whether the deal would affect upstream purchasing markets, drawing on findings from its earlier review of Edeka’s acquisition of Tegut assets. Although Rewe serves as a buyer for branded food manufacturers, the authority determined its national procurement share would increase by less than 0.2 percentage points. Tegut further assured that Rewe would not gain access to its existing purchasing terms through the purchasing cooperative.
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Germany’s food retail sector remains highly concentrated, with Edeka, Rewe, Schwarz Group (which operates Lidl and Kaufland), and Aldi together controlling over 90% of total market revenue. Despite this concentration, the regulator concluded the transaction would not disrupt competitive conditions. Andreas Mundt, president of the Federal Cartel Office, emphasized that competition among major retailers remains strong and that concentration alone does not justify blocking a merger under competition law.
Tegut’s withdrawal from Germany follows Migros Zurich’s March 2026 announcement that it would sell its entire portfolio of approximately 300 supermarkets and automated small-format stores. The regulator has already approved the sale of 36 Tegut locations to Tante Enso and provisionally cleared Edeka’s acquisition of 178 stores and related assets. Rewe’s deal could still face legal challenges, with the Düsseldorf Higher Regional Court set to review the decision.
