FRANKFURT, Oct 1 (Reuters) - Rewe bought 39 Sky supermarkets in southwest Germany from cooperative retailer Coop eG for an undisclosed sum, to claim further market share in Europe's biggest economy as other retailers focus on growth abroad.
Rewe, Germany's second-largest grocery retailer behind Edeka, said it would continue to look for suitable acquisitions as it strives to expand its store network in Germany while other retailers, such as Metro, the world's fourth largest, have set their sights on Asia, eastern Europe or the Americas.
Rewe said the purchase had been a rare opportunity to grow in Germany's fiercely competitive groceries market.
The deal will also significantly strengthen Coop's equity capital base, the seller said, adding it would now aim to expand its store network in northern Germany.
All employees affected will be transferred to Rewe, the companies said, adding the deal needed approval from anti-trust authorities.
German retail sales fell unexpectedly in August as consumers remained cautious, data showed on Thursday, and Metro had said in August it expected its sales to fall further in the coming months, mainly due to rising unemployment.
(Reporting by Eva Kuehnen; Editing by Dan Lalor) Keywords: COOP/REWE (eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Rewe, Germany's second-largest grocery retailer behind Edeka, said it would continue to look for suitable acquisitions as it strives to expand its store network in Germany while other retailers, such as Metro, the world's fourth largest, have set their sights on Asia, eastern Europe or the Americas.
Rewe said the purchase had been a rare opportunity to grow in Germany's fiercely competitive groceries market.
The deal will also significantly strengthen Coop's equity capital base, the seller said, adding it would now aim to expand its store network in northern Germany.
All employees affected will be transferred to Rewe, the companies said, adding the deal needed approval from anti-trust authorities.
German retail sales fell unexpectedly in August as consumers remained cautious, data showed on Thursday, and Metro had said in August it expected its sales to fall further in the coming months, mainly due to rising unemployment.
(Reporting by Eva Kuehnen; Editing by Dan Lalor) Keywords: COOP/REWE (eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
