Franklins Bought By Metcash

Franchising.net.au:

The Franklins chain of supermarkets is now owned by Metcash, parent company of the IGA grocery store banner. The sale was completed on 30 September, after the Australian Competition and Consumer Commission’s application for a temporary injunction was overruled by the Federal Court of Australia.

Gareth Ackerman, chairman of South African based Pick n Pay, said “While the decision to exit our Australian investment was a difficult one, it was clear to us that Franklins lacked the significant scale needed to compete effectively in this market. Combining the operations of Franklins and Metcash was the best option to create a more robust competitor to the major supermarket chains.

“The Federal Court also found that the combination of the two businesses would strengthen the capacity of independent retailers operating under the IGA banner to compete more effectively with the majors.”

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