Rewe faces probe in Czech Republic
The German retail giant, Rewe, struck a deal in March to buy the 146 Tengelmann's Plus stores in the Czech Republic to merge the chain with its own discount business, Penny; but the acquisition will now face a domestic anti-trust investigation as the European Commission has agreed to allow the Czech Competition Authority to rule on the takeover.
"The Czech Competition Authority has requested the Commission to refer the notified transaction to it because it considers that the transaction would affect competition in a number of local retail markets within the Czech Republic, which present all the characteristics of distinct markets and which do not constitute a substantial part of the [European] Single Market," the Commission said.
Rewe runs 96 Delvita supermarkets in the Czech Republic alongside a 181-strong chain of Billa stores. If approved, the deal would create a company of 317 stores, which would generate over €1.2 billion in sales.
Related article:
Rewe to buy Tengelmann's Plus network in Czechia
