By Aimee Chanthadavong
Metcash said it is currently preparing its case for when it meets the Australian Competition and Consumer Commission (ACCC) in the Federal Court.
Metcash’s decision to acquire the Franklins supermarket chain last July was overruled by the consumer watchdog.
The ACCC was concerned that the acquisition may lessen the competition of supplying groceries to independent retailers, including those under the IGA and Supa IGA banners.
While Metcash CEO Andrew Reitzer expressed his disappointment about the ACCC’s decision, the country’s largest wholesaling and distribution company confirmed it was still going to go ahead with the proposed transaction.
“Metcash is delighted to have the opportunity for the Federal Court to determine whether we can proceed with the transaction. We clearly have different views to the ACCC regarding the Australian grocery market and what will ultimately be in the best interests of all consumers,” Andrew Reitzer, Metacash CEO, said in a statement last November.
“We consider that it will be in all parties’ interests for these issues to be authoritatively determined by the Federal Court as soon as possible.”
The trial is scheduled to start on March 14.