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ACCC appeals Franklins acquisition judgment
The Australian Competition and Consumer Commission (ACCC) has decided to appeal against the Federal Court's judgment dismissing its application to prevent Metcash from acquiring the Franklins supermarket business.
In response earlier today, 9 September 2011, Pick n Pay chairman Gareth Ackerman said: "We are deeply disappointed by the ACCC's decision to appeal the Federal Court's judgment given the Federal Court comprehensively dismissed each of the arguments presented by the ACCC in its case.
"In fact, the Federal Court found the sale would strengthen the capacity of independent retailers operating under the IGA banner to compete more vigorously with the major supermarket chains.
"It will take us time to fully review this decision and evaluate our options, however the tender process for stores conducted late last year demonstrated the individual stores continue to have strategic value. We have of course considered the possibility that an appeal may come and have been planning for this eventuality.
"A protracted appeal process is likely to have a strongly negative impact on Franklins' already weakened financial position which has deteriorated after ruthless targeting by the major supermarket chains and the weak consumer environment generally," he concluded.
