Franklins, currently owned by Pick n Pay operates 80 corporate owned and eight franchised Franklins supermarkets in New South Wales.
Earlier on Wednesday, the ACCC said that central to its concerns was the proposed acquisition was likely to result in a substantial lessening of competition through the removal of Metcash's closest and only genuine competitor for the wholesale supply of packaged groceries in NSW [New South Wales].
"We are surprised and disappointed by the ACCC's decision and fail to see how it could view the proposed sale to Metcash Trading as lessening competition," the company's chairman Gareth Ackerman said.
"On the contrary we believe the sale is in the best interests of Australian consumers."
Ackerman added that he was also very surprised by the ACCC placing any weight in its decision on unnamed parties, who had apparently expressed strong interest to the ACCC in acquiring the Franklins business.
"Pick n Pay has received no credible offer for the business from any party."
Ackermann added that the company would be "digesting" the implications of the ACCC's decision and considering Pick n Pay's next steps.
At 11.11am Pick n Pay's shares were trading at R48.50, down 0.96%.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
Dentsu 18 hours
SAMRA 16 hours
