In August 2019, the European Commission approved the transaction by which REWE acquired the sole control of Lekkerland. Both parties are active in the distribution of daily consumer goods. In all other countries in the EEA except Germany and Austria, Lekkerland is mainly active on the wholesale level and REWE mainly downstream at retail level. As a result, the Commission concluded that the merger would not raise competition concerns.
The assessment of the transaction for competition in Germany and Austria, was referred to national competition authorities. In Germany, the Bundeskartellamt approved the merger without conditions. In Austria, the Federal Competition Authority (BWB) concluded after a Phase II investigation that the merged entity would gain too much power in the ‘on-the-go’ segment, in particular in the supply of petrol station shops. REWE had to remove the Lekkerland operations in Austria from its planned merger in order to proceed.
Compass Lexecon provided economic advice to REWE. We made a preliminary assessment of the effects of the merger on competition in the daily consumer good sector.