Metcash Limited's (ASX:MTS) acquisition of Franklins supermarkets has hit another hurdle. The Australian Competition and Consumer Commission has today announced it is appealing the Federal Court’s judgment to stop Metcash acquiring Franklins.
The ACCC says it is appealing the case for two reasons.
Firstly, because it believes there will be adverse effects on independent supermarket retailers, consumers and competition in the grocery sector.
Secondly, the Court’s interpretation of some fundamental principles of merger analysis could have serious implications for the future, according to the ACCC.
In the 2011 financial year Metcash increased its net profit to $251 million.
