Metcash stands firm on Franklins purchase

Metcash isn’t backing down from its acquisition of Franklins despite a decision by the Australian Competition and Consumer Commission (ACCC) to appeal the Federal Court’s decision to allow the purchase of the business from South African retailer Pick n Pay.

In a statement to the Australian Stock Exchange, Metcash notified the ACCC that after the expiry of five clear business days from Monday “it will consider itself free to agree with Pick n Pay to waive the condition requiring ACCC approval and to complete the acquisition of the issued shares…”

The notice follows from the ACCC’s decision on 9 September to appeal the Federal Court’s judgment dismissing it from preventing Metcash from acquiring Franklins.

In response to the ACCC decision late last week, Metcash said it was “disappointed” the watchdog would further delay the purchase, which was first announced in July 2010 and one which “the Federal Court concluded was likely to enhance the ability of independent IGA retailers to compete with the major supermarket chains.”