The Bundeskartellamt, Germany's competition authority, has cleared Harry-Brot GmbH's plans to acquire Glockenbrot Bäckerei GmbH & Co. OHG, a bakery currently part of the REWE Group. This acquisition includes the establishment of two joint ventures with REWE, aimed at enhancing their operational capabilities in the baked goods market.

Andreas Mundt, President of the Bundeskartellamt, stated that Harry-Brot is the leading producer of bread and baked goods in Germany. The authority found that the merger would not significantly alter the competitive landscape, as Glockenbrot has primarily produced goods for REWE within the group, and viable competitors will remain in the market.

In the financial year 2024, Harry-Brot reported a turnover of approximately 1.3 billion euros, operating ten baking facilities and supplying both branded and private label products. The merger will particularly impact the pre-packaged baked goods market, where Harry-Brot holds over 40% market share in Germany.

The merger represents a vertical disintegration, as it removes a producer from the REWE group. Although Harry-Brot's market share will increase due to the acquisition, the Bundeskartellamt believes that competition will remain robust, with sufficient alternative supply sources for food retailers. The authority also noted that the previous internal production of Glockenbrot for REWE limited competition, which will change post-merger.

Additionally, the merger will not raise significant concerns in the markets for pre-baked and bake-off products, as the competitive positions of Harry-Brot and Glockenbrot do not pose a threat to effective competition.