Aussie Regulators Oppose $210M Grocery Store Deal

Law360, New York (November 17, 2010, 4:36 PM EST) -- Australia's competition watchdog said Wednesday that it would oppose a proposed deal for Metcash Trading Ltd., the country's largest grocery and liquor wholesaler, to acquire the Franklins chain of grocery stores from South Africa's Pick n Pay Retailers Ltd. for AU$215 million ($210 million).

The Australian Competition and Consumer Commission raised concerns that the arrangement would decrease competitiveness in the retail grocery market, saying Franklins current competition with Metcash in the wholesale business gives an advantage to independent retailers.

"Our thorough review found that the proposed...
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