Court ruling leaves Metcash free to purchase Franklins
Wholesale giant Metcash is free to complete its acquisition of Australian supermarket chain Franklins after the Federal Court refused an application by the Australian Competition and Consumer Commission’s (ACCC) for an injunction to prevent the acquisition taking place.
The Federal Court also granted an expedited timetable for the appeal hearing with a three day hearing scheduled for 24 October 2011.
As a result, Franklins parent company Pick n Pay can now agree with Metcash to waive the condition requiring ACCC’s approval and complete the acquisition.
Chairman of Pick n Pay, Gareth Ackerman said today, “To this end, Pick n Pay and Metcash will consider whether to complete the sale prior to the outcome of the appeal. We have consistently maintained that the sale of Franklins to Metcash would deliver the best outcome for Pick n Pay and its shareholders, Franklins employees and Australian consumers generally.
“From the outset we have been confident in the merits of our legal arguments and our position was vindicated by the comprehensive judgment in our favour in the Federal Court earlier this month. We are optimistic the appeal court will reach a similar conclusion,” he said.