Silverwater. Metcash may challenge ACCC

Metcash, based at Silverwater, is expected to challenge a decision by the ACCC to block its planned $215 million takeover of the Franklins supermarket chain, claiming the threatened exit of Franklins' owner would only cede more power to industry heavyweights Woolworths and Coles. The ACCC said it believed Metcash's purchase of 85 Franklins stores would effectively give Metcash a monopoly on grocery wholesaling to independent NSW supermarkets. Franklins is owned by South African retail giant Pick n' Pay.

Silverwater. Metcash works on new submission

Andrew Reitzer, CEO, of Metcash, based at Silverwater, believes his proposed $215 million takeover of the struggling Franklins supermarket chain would greatly enhance the competitive landscape in Australia and provide a much-needed counterweight to the powers of market heavyweight Woolworths and Coles. Last month the ACCC said the deal was likely to result in less competition for the supply of packaged groceries to independent retailers in NSW. Metcash is currently working on a new submission.

Silverwater. Franklins sale may be piecemeal

South African retailer Pick n Pay will be forced to break up the struggling Franklins supermarket chain and sell the stores on a piecemeal basis if a proposed $215 million sale the Metcash, based at Silverwater, is blocked by the ACCC, according to The Australian Financial Review. The ACCC fears the deal could substantially lessen competition in the NSW grocery wholesaling market.

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.

Silverwater. EOIs rushed

Grocery wholesaler, Metcash, at Silverwater, has received about 150 expressions of interest from independent retailers keen to buy 77 of Franklins' 85 stores once Metcash’s $215 million acquisition of NSW’s fourth-largest supermarket chain in completed. Franklins plans to on-sell the stores under the IGA banner and is expected to recoup as much as $150 million. Metcash is awaiting clearance from the ACCC possibly on September 23, according to The Australian Financial Review.