German bakery major Harry-Brot gets OK to buy Rewe plant

German bakery group Harry-Brot has secured approval from competition officials to buy a factory from major grocer Rewe.

Harry-Brot has acquired the Glockenbrot Bergkirchen bakery from Rewe for an undisclosed sum. The approximately 320 staff at the site will move to Harry-Brot, a spokesperson told Just Food.

In its statement, Germany’s Federal Cartel Office, the Bundeskartellamt, said the deal “will only result in minor competitive changes for the other market participants” in the country's bakery sector.

Glockenbrot, which has been a part of Rewe since 1986, has produced private-label bread and baked goods for the retailer at two sites – one in Bergkirchen and the other in Frankfurt.

Before striking a deal to sell the Bergkirchen to Harry-Brot, Rewe had decided to close the factory in Frankfurt.

Harry-Brot produces bread and baked goods from ten plants in Germany. It generated sales of around €1.3bn ($1.48bn) in its 2024 fiscal year.

Andreas Mundt, president of the Bundeskartellamt, explained the “decisive factor” in its assessment was that Glockenbrot had so far produced “exclusively” for Rewe within the group.

"Harry-Brot is by far the leading manufacturer of bread and baked goods in Germany. The planned acquisition of the Rewe subsidiary Glockenbrot will further strengthen this position. Nevertheless, we do not have any fundamental competition concerns that could justify a prohibition of the transaction," Mundt said.

"The acquisition will only change the competitive situation for other market participants to a manageable extent. Even after the merger, there will still be powerful competitors in the primarily affected market for self-service bread and baked goods."

Meanwhile, Harry-Brot is planning to build another bakery in Erlensee, east of Frankfurt. If the project goes ahead, the company is hoping to start production in 2028.

The Bundeskartellamt said the acquisition of the Bergkirchen site and the opening of the Erlensee facility would “at least in southern Germany, likely lead to an expansion of the product range and increased competition”.

"German bakery major Harry-Brot gets OK to buy Rewe plant" was originally created and published by Just Food, a GlobalData owned brand.

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