ACCC decision 'disappoints' PnP

Retailer Pick n Pay said it was disappointed by the Australian Competition and Consumer Commission (ACCC)'s decision to oppose the proposed sale of Franklins to Metcash Trading Limited.

19 Nov 2010

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.

'Sale in best interests of Australian consumers'

"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%.

Source: I-Net Bridge

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