Metcash has given the all clear from the federal court to take over Franklins from Pick n Pay Retailers for a price of $189.3 million.
This addition of the Franklins stores has seen Metcash’s grocery market share in NSW rise from approximately 11 per cent to around 17 per cent and has added $450 – $500 million per annum of wholesale sales to Metcash’s business.
This comes after the Australian Competition and Consumer Commission (ACCC) had appealed the earlier federal court judgment of Justice Emmett , refusing the ACCC’s application to injunct Metcash from acquiring the Interfrank shares. The full court dismissed the ACCC’s appeal and ordered that the ACCC pay Metcash’s legal costs.
“We will continue the process of seeking and reviewing expressions of interest for the stores, which are being sold to independent retailers,” Andrew Reitzer, Metcash CEO, said.
“Backed by Metcash, and in the hands of independent retailers, the stores will enhance competition against the national self supply chains.”
Metcash is now seeking expressions of interest for the purchase of the 80 Franklins Supermarkets across Sydney and regional NSW.