The Commerce Commission has declined to grant clearance to Foodstuffs and declined to grant clearance to Woolworths Limited for either of them to acquire up to 100% of the shares in The Warehouse Group Limited.

Commerce Commission Chair Paula Rebstock said that the Commission was not satisfied that either of the proposed acquisitions will not have, or would not be likely to have, the effect of substantially lessening competition in the relevant markets.

In line with its usual procedure, the Commission will not be making any comment on the decisions until the written reasons are available.

Public versions of the written reasons for the decisions will be available as soon as practicable on the Commission's website, www.comcom.govt.nz, under the Clearances Register.

Background

On 21 December 2006 the Commission received an application from the three Foodstuffs co-operatives seeking clearance to acquire up to 100% of the ordinary shares in The Warehouse Group Limited. Foodstuffs is New Zealand's largest grocery retailer and owns the New World, Pak'n'

Save and Four Square

brands.

 

On 17 January 2007 the Commission received an application from Woolworths Limited seeking clearance to acquire up to 100% of the shares in, or assets, of The Warehouse Group Limited. Woolworths owns Progressive Enterprises Limited which, through its subsidiaries, operates supermarkets under the Woolworths, Foodtown and Countdown brands.

The Warehouse Group Limited operates the Warehouse and Warehouse Stationery stores. More recently, the Warehouse began retailing a full range of groceries at its Sylvia Park and Whangarei stores.