The offensive gained some ground, but none of the more ambitious objectives were achieved before the operation was called off due to increasing losses of infantry and tanks, particularly the heavy Tigers.

Adolf Hitler and the German General Staff Oberkommando der Wehrmacht (OKW) believed that Generaloberst Hans-Jürgen von Arnim should assume command but Generalfeldmarschall Albert Kesselring the German Oberbefehlshaber Süd (OB Süd, Commander-in-Chief South) argued for Generalfeldmarschall Erwin Rommel, who was appointed to command the new Army Group Africa on 23 February.

[3] The villages of Gafsa, Metlaoui and Tozeur were to be held by mobile troops and most of the attack group was to return to the 1st Italian Army.

On 24 February, Arnim flew to Rome without consulting Rommel and advocated an offensive towards Béja, being convinced that the British First Army (General Kenneth Anderson), had sent reinforcements south from the northern front to save Sbiba and Thala.

Arnim gained the approval of Kesselring for an attack on a wide front against the V Corps (Charles Allfrey) sector on 26 February.

The northern horn, with most of the tanks, was to advance on the route from Mateur from the north-east, to capture Béja 40 km (25 mi) west of Medjez.

[2][6] The subsidiary Unternehmung Ausladung began on the morning of 26 February, to outflank the British in Sedjenane and the high ground opposite Green Hill, with an attack on the hilly coastal strip to the north between the town and Cap Serrat.

[8] The Axis forces, with air support from the Luftwaffe made good progress across the hills held by the Free French between Cap Serrat, the railway and Sedjenane.

[8] A counter-attack by a battalion of the Lincolnshire Regiment, the DLI and Churchill tanks of the North Irish Horse drove the Germans back in determined fighting.

The British position became untenable due to withdrawals by the French further west in the Medjez area, when Axis troops occupied high ground dominating the town.

The German penetration towards Béja and Medjez along with the French withdrawal had caught the 139th Infantry Brigade in a salient and two companies of Sherwood Foresters were overrun.

[5] The kampfgruppe attacked on the evening of 25 February, their first objectives being Tally Ho corner, an important road junction and a knoll nicknamed Fort MacGregor.

British artillery bombarded the hill for several hours with all the medium and heavy guns and when the Surreys attacked again, it was empty save for six shell-shocked Germans.

[13] The 334th Division struck at Tally Ho corner just before midnight, surprised and overran the commando garrison, whose survivors were rescued by Churchill tanks.

[14] The Germans pressed on to a small ridge 6 mi (9.7 km) to the east of El Aroussa, where two battalions of the Hermann Göring Division and a supporting panzer company assaulted a position defended by the Churchill tanks of Suffolk Squadron, 142nd Regiment RAC.

[5] The British received reinforcements and counter-attacked after another bombardment, pushing the Germans back from Tally Ho corner into the hills east of the Medjez-El-Bab to El-Aroussa road during the night.

[15][14] After dark, the British advanced and mopped up halfway along the road to Steamroller Farm, held by about 2,000 men from two battalions of the Hermann Göring Division, elements of a panzergrenadier regiment, 5 cm Pak 38 and 88 mm anti-tank guns.

[15] A squadron of the 51st RTR in Churchill Mk III tanks and a company of Coldstream Guards set off just before midday on 28 February and by 4:00 p.m. they were in sight of the farm.

The rest of the 10th Panzer Division was to attack once the objectives were achieved and advance westwards, about 25 mi (40 km) south of Medjez.

The 128th Infantry Brigade had support from seventy-two 25-pounders, fifteen 5.5 inches (140 mm) medium guns and two squadrons of Churchill MK IIIs of the North Irish Horse.

[27] A tank-killing zone had been prepared with minefields, anti-tank guns, hull-down Churchill tanks and direct fire areas for medium and heavy artillery.

A cab rank of Hurricane Mk IID fighter-bombers, equipped with 40 mm Vickers S guns, circled overhead in communication with the ground, waiting for targets.

[10][32] The German tanks and infantry suffered many casualties; the serpentine road which the Axis transport was using was turned into a wilderness of bomb craters and burning vehicles, which forced a withdrawal.

[27] Anderson had considered abandoning Medjez, until the success of the defence of Hunt's Gap, the no retreat order issued by General Harold Alexander (commander of the 18th Army Group) and the end of the German attack, which saved the village.

By 5 March, 2/4th Hampshires had lost 243 men killed or missing and were relieved by the 8th Battalion, Argyll and Sutherland Highlanders, of the 36th Infantry Brigade, 78th Division.

[45] On 17 March, Axis forces were reinforced by the 504th Heavy Panzer Battalion, while the 501st repaired 25 of its tanks bringing it back up to quarter strength.

[46] With the salient at Medjez relieved and lateral roads in the V Corps area cleared, Anderson began to prepare the big attack scheduled for 22 April to take Tunis.