Media

ACCC to appeal Metcash verdict

September 9, 2011 – 11:44AM
The Age

The competition watchdog says it will appeal a federal court judgment which paved the way for grocery wholesaler Metcash to buy the Franklins supermarket business.
The Australian Competition and Consumer Commission (ACCC) will appeal the decision on two grounds, ACCC Chairman Rod Sims said.
“First, because of the adverse effect of the proposed acquisition on independent supermarket retailers, consumers and competition in the NSW and ACT grocery sector,” Mr Sims said.

And second, “if left unchallenged, the court’s interpretation of some fundamental principles of merger analysis could have serious implications for the ACCC’s ability to block anti-competitive mergers and so protect consumers in the future.”

Mr Sims said Metcash, with this proposed acquisition, would be able to increase prices and/or reduce service to independent supermarket retailers.
Following last month’s ruling, Metcash is poised to acquire Franklins’ 80 corporate stores and supply goods to its 10 franchised stores.
The ACCC had attempted to stop the proposed $215 million takeover, arguing Metcash would have an effective monopoly on grocery wholesaling to independent supermarkets in NSW if the deal proceeded.

Read more:

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

What Our Members Say

Vestibulum blandit faucibus urna in hendrerit. Vivamus leo dui, bibendum vitae hendrerit ac, volutpat quis dolor. Maecenas id lacinia odio, et malesuada lectus. Nulla et ante non metus consectetur vestibulum sed quis dolor. Fusce non tempus est.

Pellentesque pretium, diam sed venenatis sagittis, libero augue imperdiet odio.

Member NameCompany Name

Pellentesque pretium, diam sed venenatis sagittis, libero augue imperdiet odio.

Vestibulum blandit faucibus urna in hendrerit. Vivamus leo dui, bibendum vitae hendrerit ac, volutpat quis dolor. Maecenas id lacinia odio, et malesuada lectus. Nulla et ante non metus consectetur vestibulum sed quis dolor. Fusce non tempus est.

Member NameCompany Name

Pellentesque pretium, diam sed venenatis sagittis, libero augue imperdiet odio.Vestibulum blandit faucibus urna in hendrerit. Maecenas id lacinia odio, et malesuada lectus. Nulla et ante non metus consectetur vestibulum sed quis dolor. Fusce non tempus est.

Vivamus leo dui, bibendum vitae hendrerit ac, volutpat quis dolor.

Member NameCompany Name
X