The Bundeskartellamt has sent a draft of its competitive assessment to the parties involved in the EDEKA/Tegut merger on July 27, 2026. The preliminary evaluation indicates substantial competitive concerns regarding the merger in its current form. EDEKA's proposed commitments are deemed insufficient to fully address these concerns.

Andreas Mundt, President of the Bundeskartellamt, stated that the authority's role is to evaluate the merger strictly according to competition law, without considering other public interests such as employment effects, which are addressed through separate procedures.

The merger involves EDEKA acquiring 202 Tegut grocery stores, 41 automated teo locations, a bakery, and a logistics center. The merger was notified on March 23, 2026, and the main examination process began on April 21, 2026. EDEKA submitted its first commitment offer on July 20, 2026, which extended the statutory review period until September 23, 2026. The preliminary assessment suggests that the merger would raise significant competitive issues in several regional markets.

The investigation revealed that EDEKA already holds a strong position in procurement markets, with around 30% market share, particularly for manufacturer brands. However, the additional market share from acquiring Tegut is minimal, leading to the conclusion that the merger would not significantly impede effective competition in procurement markets.

Mundt emphasized that the German grocery retail market is dominated by four major chains—EDEKA, REWE, Schwarz Group (Lidl/Kaufland), and ALDI—accounting for over 90% of sales. This high concentration alone does not justify blocking the merger, as there is no evidence of a lack of effective competition among these chains.

The Bundeskartellamt examines mergers in grocery retail from two perspectives: their impact on competition for consumers and their effects on manufacturers and suppliers. The authority is particularly concerned about whether the merger would significantly reduce choices and competition in local markets, with serious concerns identified in 37 regional areas, especially in Northern and Eastern Hesse, Thuringia, Northern Bavaria, and Baden-Württemberg.

The authority has conducted a thorough analysis of procurement markets, examining nine selected product groups and interviewing around 150 manufacturers and suppliers. The findings suggest that while EDEKA has a strong position, the increase from acquiring Tegut is less than 0.5% of the total procurement volume in the German grocery retail sector, which is not substantial enough to warrant blocking the merger.

Companies can propose commitments during the main examination process to alleviate competitive concerns, such as excluding certain locations from the acquisition or selling them to independent competitors. EDEKA has submitted an initial commitment offer, but it does not fully address the Bundeskartellamt's competitive concerns.

The Bundeskartellamt will now consider the responses from the parties involved and the progress of commitment negotiations before making a final decision on the merger.