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Steinmetz, Benko likely to buy majority of Germany's Karstadt - report
Thursday 21 November 2013

21 November 2013 - Israeli businessman Beny Steinmetz and Austrian investor Rene Benko's Signa have been given an option to buy 75.1% of German department store chain Karstadt for just EUR1.00 (USD1.35), Reuters reported citing a source.

The target comprises 83 department stores.

Karstadt is currently owned by Nicolas Berggruen, who has received criticism by local media and unions about not investing sufficiently in the chain. The businessman has previously considered a merger with rival department store group Kaufhof, which however has rejected the idea. In September, Berggruen offloaded 75.1% interests in Karstadt's premium and sports divisions to Rene Benko.

Earlier German magazine Manager Magazin reported that Steinmetz had taken a 37.55% stake in the premium and sports businesses of Karstadt from Benko.

In return for the option given to Steinmetz and Benko, Berggruen will get a minority stake in a property company operated by Signa and Steinmetz and an option for a 24.9% stake in properties rented to Karstadt's three luxury stores, the magazine added.
Date Published: 21/11/2013
Target: Karstadt´s premium and sports businesses, Karstadt
Country: Germany
Deal Size: 1.35 (USD)
Sector: Wholesale/Retail
Type: Corporate acquisition, Stakebuilding
Status: Closed, Speculation, Exclusivity
Vendor: Rene Benko, Nicolas Berggruen
Buyer: Signa, Beny Steinmetz, Rene Benko