Metcash Ltd
(ASX:MTS) has criticised Australian regulators for blocking it’s $215 million proposed takeover of Franklins supermarkets.
Metcash’s subsidiary IGA’s NSW chairman Andrew Bray and told ABC TV that the rejected takeover will hurt competition.
Mr Bray says the market is totally dominated by Coles and Woolworths supermarkets which have a market share of between 75 to 80 per cent.
Last week the Australian Competition and Consumer Commission said the planned tie-up will effectively give Metcash a monopoly on grocery wholesaling to independent supermarkets in New South Wales.
However Mr Bray says the acquisition of Franklins would have offered Metcash an opportunity as independent retailers to go head to head with the likes of Woolworths and Coles.
Metcash earned a net profit of $230.3 million in the 12 months to 30 April 2010.
