Marktkauf goes to Toom Baumärkte

The Rewe Group of Cologne is taking over 133 DIY stores from Marktkauf, the Bielefeld-based subsidiary of Edeka. This means that Toom Baumarkt, the specialist retail subsidiary of the Rewe Group, will have 385 outlets, making it the new number three of the German DIY retail sector in terms of total number of stores. Net retail turnover will increase from € 1.3 bn (2006) to more than € 2 bn through this transaction. The acquisition is subject to approval by the monopoly authorities. The parties have agreed to keep silent on the subject of the purchase price and other terms of the acquisition. However, industry analysts reckon that Marktkauf, the "vendor", will have to transfer a three-digit sum (between € 160 and € 300 mio) to Rewe, the "purchaser".