German retailer REWE poised for acquisitions after strong 2014

COLOGNE, Germany, March 31 (Reuters) - The strong finances of Germany's second-biggest supermarket group REWE mean it is well positioned to pounce on potential acquisitions, its chief executive said on Tuesday after profit grew faster than it expected in 2014.

Its main businesses, which include the Penny discount chain and Toom DIY stores, reported a 3 percent rise in sales to 42.5 billion euros ($45.66 billion) and a 29 percent jump in earnings before interest, taxation and amortisaton (EBITA) to 468 million euros.

"If market opportunities arise through acquisitions, we are in a position to take advantage of such opportunities because of our capital resources, our low net debt and continued high, unused lines of credit," said Chief Executive Alain Caparros.

Analysts have speculated that REWE might be interested in buying or being involved in an asset swap for some of Tesco (Xetra: 852647 - news) 's businesses in eastern Europe as Britain's biggest retailer looks to bolster its balance sheet.

REWE, a cooperative that runs 15,000 stores in 12 countries in Europe, said it was continuing to grow faster than the stagnant German supermarket sector in 2015, with sales at its stores up 4.6 percent in January and February.

Caparros said REWE, which invested 1.37 billion euros in its business 2014, would continue to spend heavily on e-commerce, revamping supermarkets and opening more convenience stores.

He told Reuters earlier this month he hoped REWE's investment in e-commerce would help it overtake Germany's biggest supermarket group, Edeka.

($1 = 0.9308 euros) (Additional reporting and writing by Emma Thomasson in Berlin; Editing by Mark Potter and Pravin Char)