The Federal Cartel Office in Germany has launched an investigation into the planned fusion of ailing retail giants Kaufhof and Karstadt, the Bonn-based government agency announced on Monday, August 27.
Andreas Mundt, director of the Federal Cartel Office, told press that his staff would consider the position of the two department store chains in German regional markets, as well as its digital competition from e-commerce providers.
The news comes shortly after the newspaper “Sueddeutsche Zeitung” reported that the merger could collapse due to financial difficulties experienced by Kaufhaus’ Canadian mother corporation Hudson’s Bay Company.
Any merger review would require an investigation of the two chains’ position in German regional markets, as well as their competitive position in relation to online retailers. “It would be data heavy,” Mundt said in response to a question.
Full Content: Reuters
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