Silverwater. ACCC queries takeover

The Australian Competition and Consumer Commission has raised concerns over the planned $215 million acquisition by Metacash, based at Silverwater, of its rival Franklins. TheACCC said the deal was likely to result in less competition for the supply of packaged groceries to independent retailers in NSW. It has called for industry submissions on the takeover. Metcash's chief executive, Andrew Reitzer, has stated previously that the deal would increase competition in the grocery market because Metcash plans to sell Franklins' 85 supermarkets to independent retailers trading under its IGA banner. The ACCC has deferred its final decision on the takeover until November 11.