Metcash pushes ahead with Franklins deal
Australian grocery and hardware wholesaler Metcash has notified the Australian Competition and Consumer Commission (ACCC) that, from Friday 15 September, it will no longer require the ACCC’s approval to acquire the Franklins supermarket chain.
Metcash has signalled that, after this Friday, it intends to complete the agreement with Pick n Pay, which owns the Franklins chain, by waiving a condition requiring the ACCC’s approval and to settle the acquisition of the Franklins supermarket chain.
Metcash’s notification to the ACCC follows the ACCC’s decision on 9 September 2011 to appeal the Federal Court’s judgment dismissing the ACCC’s application to prevent Metcash from acquiring Franklins.
In effect, the ACCC is being told that Metcash is not willing to await an ACCC court appeal against the judgment.
Chairman of Pick n Pay, Gareth Ackerman said, “We welcome this development and confirm our view that the sale of Franklins to Metcash will deliver the best outcome for Pick n Pay and its shareholders, Franklins employees and Australian consumers in general.
“We have consistently argued that the sale of Franklins to Metcash would enhance competition, delivering real benefits to Australian consumers. The recent judgment in the Federal Court comprehensively rejected each of the ACCC’s arguments and reinforced our views,” he said.