Mergers - Case 19

REWE/Adeg: Advised REWE in a merger proceeding in front of the European Commission on the competitive effects of the acquisition of Adeg with a focus on buyer power issues and regional market concentration

Merger between REWE and Adeg. Unlike in case precedents, buyer power concerns by the European Commission case team could be effectively addressed. We conducted a quantitative analysis of the supplier structure of the two retailers and, in particular, of the supplier overlaps between the two companies. The main theory of harm was based on high concentration at the regional level. The merger was cleared in Phase I with regional divestiture remedies.