Foodstuffs Disappointed With Outcome Of High Court
Foodstuffs Disappointed With Outcome Of High Court Action
Foodstuffs (Auckland) Ltd says it is “naturally disappointed” that the High Court has ruled against its application to have the Commerce Commission apply the new commerce law to any Progressive bid for Woolworths.
“While the matter has now been dealt with by the High Court we are considering whether to appeal the decision,” said Foodstuffs (Auckland) managing director-designate Tony Carter today. “Any decision on whether
to appeal the judgement will be made promptly after receiving appropriate legal advice.”
Progressive Enterprises Ltd notified the Commerce Commission that it was
targeting Woolworths NZ for acquisition, just one day before a change in
the Commerce Act brought in tougher competition laws.
Under the old provisions of the Act, the competition test in a takeover situation was one of market dominance. The test under the new legislation is that of substantially lessening competition in a market.
The Foodstuffs organisation consists of three autonomous, independently-owned co-operatives – Foodstuffs (Auckland) Ltd, Foodstuffs (Wellington Co-op Society Ltd and Foodstuffs (South island) Ltd – each with its own totally separate shareholders and board of directors. The Foodstuffs Pak ‘N Save, New World, Write Price and Four Square stores are individually owner-operated.
Progressive Enterprises, owned by Perth-based Foodland Associated Ltd, operates the Foodtown, Countdown and 3 Guys supermarket chains. Woolworths’ supermarkets in New Zealand trade under the Woolworths, Big Fresh and Price Chopper brands. Woolworths is owned by Hong Kong-based Dairy Farm International Holdings Ltd.