German giants at department stores Karstadt and Kaufhof talk about mergers

The German giant of Kaufhof department stores could combine with his rival Karstadt. Their owners are in discussions about a merger. (Photo: KEYSTONE / AP / MARTIN MEISSNER)

(nda / awp / dpa / reu)

In this paper, both reaffirm their intention to consider options for a joint venture. The Canadian company publicly commented for the first time Friday on a planned association with rival Karstadt.

It is in talks, a binding agreement for the sale or merger of European companies has not been made, said HBC.

According to the information disseminated by the media, it is considered appropriate to inform. "There is no guarantee that such negotiations will ultimately lead to a transaction," the statement said.

Possible closures

According to media reports, HBC and the Austrian owner of Karstadt, René Benko, were also under pressure. Amazon's online competitors in Zalando have agreed after long struggles over the key points for a merger. Karstadt, Karstadt Sport and Kaufhof must be reunited in a joint venture, though several people aware of the negotiations have said.

The letter of intent provides for the creation of a joint venture, a joint venture, in addition to Kaufhof, Karstadt and Karstadt Sport and the HBC department stores in Belgium and the Netherlands. Low.

"Three to five sites will probably be closed during a merger," said Thursday a person close to negotiations with the German news agency. Kaufhof operates in Germany 96 branches, Karstadt around 80.

The boss of Signa, René Benko, tried for years to take over the group of department stores in difficulty. Department store chains are under pressure due to the growth of online commerce and the growth of shopping malls in city centers. The merger of the two rivals Kaufhof and Karstadt is expected to reduce costs. In addition, costly rebel battles between the two companies were canceled.