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Metcash wins appeal to buy Franklins


Metcash Limited has received a win in the appeal judgment by the Full Court of the Federal Court regarding Metcash’s acquisition of shares in Interfrank Group Holdings, the owner of the Franklins chain of supermarkets, from Pick n Pay Retailers.
 
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.
 
The Interfrank shares were acquired by Metcash on 30 September 2011 following Justice Emmett’s judgment. Metcash is now seeking expressions of interest for the purchase of the 80 Franklins Supermarkets across Sydney and regional NSW.
 
Chief executive officer of Metcash Andrew Reitzer said: “We will continue the process of seeking and reviewing expressions of interest for the stores, which are being sold to independent retailers.
 
“Backed by Metcash, and in the hands of independent retailers, the stores will enhance competition against the national self supply chains,” he added.
 
The ACCC is considering the Metcash judgment. “The ACCC will closely examine the judgment before commenting further,” ACCC chairman Rod Sims said.

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