Federal Court gives Metcash green light to buy Franklins
The Federal Court of Australia today dismissed an application by the Australian Competition and Consumer Commission (ACCC) which sought to prevent Australian wholesale distribution and marketing company Metcash from acquiring the Franklins chain of supermarkets from its South African owners, Pick ‘n Pay Retailers.
Metcash is now free to acquire Franklins for A$215 million. Franklins comprises 80 corporate stores plus 10 franchised stores, all located in New South Wales.
The hearing of the application followed commencement of proceedings by
the ACCC in November 2010, opposing the transaction. ACCC believes the acquisition will give Metcash a monopoly on grocery wholesaling to independent NSW supermarkets.
Metcash is a national independent marketing and distribution company specialising in grocery, fresh produce, hardware, liquor and other fast moving consumer goods. It already owns the IGA supermarket business.