PWK / PIK - Pick n Pay Holdings Limited / Pick n P
PWK PIK
PWK PIK
PWK / PIK - Pick n Pay Holdings Limited / Pick n Pay Stores Limited - Update on
legal proceedings with the ACCC
Pick n Pay Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009610/06)
Share code: PWK ISIN code: ZAE000005724
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/008034/06)
Share Code: PIK ISIN code: ZAE000005443
UPDATE ON LEGAL PROCEEDINGS WITH THE ACCC
Pick n Pay Stores Limited (Pick n Pay) confirms that the Australian Competition
and Consumer Commission (ACCC) today commenced legal proceedings in the Federal
Court to prevent the proposed sale of Franklins by Pick n Pay to Metcash Trading
Limited (Metcash).
The Statement of Claim filed today sets out the key elements of the ACCC`s case.
The ACCC has agreed to an expedited hearing of the case. A timetable for the
necessary preparatory steps leading up to the hearing will be established by the
Court at a Directions Hearing on 10 December 2010.
Responding to the filing of the Statement of Claim, Pick n Pay Chairman, Mr
Gareth Ackerman, said:
"We fundamentally disagree with the ACCC`s view that the proposed sale of
Franklins to Metcash will reduce competition. We believe the sale will be pro-
competitive by creating a combined group with greater, national scale to take on
the major grocery chains.
"The ACCC`s arguments take little or no account of the power of Coles and
Woolworths and how those organisations dominate all levels of the supply of
groceries in New South Wales and throughout Australia.
"It seems contrary to common sense to suggest that the sale of 1% of the
national grocery market to the number three player, in a market that is more
than 75% dominated by Coles and Woolworths, could substantially lessen
competition.
"We are confident in our arguments and look forward to the opportunity to have
this case decided by the Federal Court."
On 1 July 2010, Franklins` parent company, Pick n Pay, announced that it had
decided to sell Franklins to Metcash. The ACCC conducted a review of the sale
and on 17 November 2010 announced that it opposed the transaction. Pick n Pay
and Metcash announced on 23 November that they were taking further steps to
proceed with the transaction. This resulted in the commencement of legal
proceedings by the ACCC today to prevent the sale going ahead. As part of an
agreement with the ACCC to seek an expedited final hearing of the matter,
Metcash has undertaken not to proceed with the sale pending the outcome of the
court process.
For more information please contact:
Tamra Veley on +27 83 251 3658 or
Dani Isaacs on +27 83 308 6260
By order of the board
Cape Town
8 December 2010
Sponsor:
Investec Bank Limited
Date: 08/12/2010 12:05:05 Produced by the JSE SENS Department.
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