German retailer Rewe eyes 25% stake in Austrian M-Preis supermarkets

German retail giant Rewe is reportedly in advanced negotiations to acquire a significant stake in the Austrian supermarket chain M-Preis. The German newspaper "Lebensmittelzeitung" reported Friday that Rewe is exploring a purchase of approximately 25% of the struggling M-Preis, which is owned by the Mölk family.

This potential investment could bolster Rewe's presence in the Tyrolean market, where M-Preis currently holds the leading position. Following M-Preis are Spar and Rewe's own subsidiary, Billa, in terms of market share in Tyrol.

M-Preis, a family-owned business, has been facing financial difficulties, leading to the consideration of a strategic partnership or acquisition. The specifics of the deal are still under discussion, but a 25% stake would give Rewe considerable influence and access to the Tyrolean market.

Rewe's potential entry into M-Preis signifies a strategic move to consolidate its position in Austria, particularly in the competitive Tyrolean region. The outcome of these negotiations will be closely watched by industry observers, as it could reshape the retail landscape in the area.