Edeka flags

The German competition watchdog Bundeskartellamt has stepped in to block a move by retail group Edeka to buy grocery chain Kaiser's.

A deal was originally struck between Edeka and Kaiser's owner, rival retail group Tengelmann, in October of last year.

Bundeskartellamt head Andreas Mundt noted that, despite concessions made by Edeka, the deal would limit competition in cities such as Munich and Berlin, Reuters reported.

Karl-Erivan Haub, who heads up Tengelmann, has said that he saw no way of Kaiser's surviving as a standalone business.