Grocery wholesaler Metcash Ltd
(ASX:MTS) is continuing to pursue its attempted takeover of Franklins despite opposition from the competition watchdog.
Metcash announced that it has come to an agreement with Franklins’ current owner, South Africa’s Pick n Pay to extend the takeover’s cut-off date to June 30.
Metcash is proposing to buy Franklins and its parent Interfrank Group Holdings from Pick n Pay $210 million. Last week, the Australian Competition and Consumer Commission (ACCC) said it would oppose Metcash’s bid for Franklins since it would effectively give the company a monopoly on grocery wholesaling to independent New South Wales supermarkets.
For the year ended 30 April 2010, Metcash booked a net profit of $230 million.
