German retail group Tengelmann has announced that it will sell its Kaiser's business to supermarket chain Edeka.
The Kaiser's chain is made up of 451 stores and has a market share of 0.6 per cent. It has approximately 16,000 employees and a turnover of approximately 1.8 billion euro. No financial details for the agreement were released.
Speaking on the news, Tengelmann's chief executive, Karl-Erivan Haub, said, "Unfortunately, we don't see any prospect of making our supermarkets into a profitable company on our own." He said that Kaiser's was too small to compete against rivals such as Aldi, Lidl and Rewe.
The deal, which must be approved by the German competition authority, is set to be completed on 30 June of next year.
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