The Cartel Office has approved the merger of Karstadt and Galeria Kaufhof. The common store chain faces hard restructuring.
The Federal Office of Cartel has given the green light to unite Karstadt and Kaufhof. President of the Bundeskartellamt, Andreas Mundt, in Bonn said: "We looked at the project intensively and there were no serious competition concerns in terms of the user or manufacturers' and suppliers." Karstadt and Kaufhof not only have many competitors in the extended business. Online retailing also creates additional competitive pressures.
Shoppers Department hopes for a better competitive position
The new retail center will have 243 locations across Europe and employ around 32,000 people. Under the umbrella of the new holding, not only will Germany's Kaufhof and Karstadt branches, but also Karstadt sports shops, the European branches of the Saks Off 5th outlet chain, Galeria Inno shops in Belgium, recently established Hudson & 39; s Bay in the Netherlands and a number of internet providers.
Karstadt receives a small proportion of the proportions
Officially, there is a talk about "merger among equals". However, the holding of Signa, owner of Karstadt, René Benko will hold the majority of the new company: Signa receives 50.01 percent of shares, owner of Kaufhof Canada HBC 49.99 percent. In the future, Signa will have a 50 per cent share in Kaufhof property that is worth billions.
What the merger will bring workers and communities is still very uncertain at this time. There are no figures on the expected job cuts or information about possible closure. However, the owner of Karstadt, René Benko, attempted to interfere with recent cuts fears: "Of course, we have to redevelop, but we will fight for each branch and try to put them in the black as & # 39 "front", it's stressed.