Germany’s Economy Ministry said on Monday it was taking legal action against a court’s decision to block government-approved plans by the supermarket group Edeka to buy its rival Kaiser’s, owned by retail group Tengelmann.
The ministry had granted special permission for the merger on the condition that no jobs would be lost. In July, however, the higher regional court of Duesseldorf nullified the decision, saying protecting workers was not equivalent to safeguarding the public interest. It also said its veto could not be appealed.
The ministry said it was taking action against both the court ruling and its decision not to allow an appeal.
“It’s worth fighting to hold on to 16,000 jobs and for the workers’ rights of those affected even if that means going to court,” Economy Minister Sigmar Gabriel said in a statement.
Tengelmann boss Karl-Erivan Haub has suggested the court’s ruling could mean the end for the loss-making Kaiser’s chain, which has 16,000 employees.
The Economy Ministry said the Federal Court of Justice had to decide whether it would allow the appeal and added that there was no deadline for that decision.
On Thursday, Edeka, Germany’s biggest supermarket group, said it had taken legal action against the court decision blocking its right to appeal the veto of the proposed merger.
(Reporting by Michelle Martin; Editing by Dale Hudson).
