The Australian Competition and Consumer Commission will examine the proposed sale of Franklins stores, announced today, ACCC Chairman, Professor Allan Fels, said today.
The proposal involves the sale of the majority of stores to independent retailers via an arrangement with grocery wholesaler Metcash and the sale of around 80 stores to Woolworths.
"The ACCC welcomes today's public clarification of Franklins' proposal. Now that the proposal is public, the ACCC will be able to conduct market inquiries and assess the impact on competition of the proposed sale of the Franklins stores.
"During the next few weeks the ACCC will consult widely with other supermarket operators, wholesalers, suppliers, industry groups and consumers.
"The ACCC is aware of the uncertainty surrounding the position of Franklins and the concerns that employees may have. It will complete its assessment of the competition implications of the proposed sale as quickly as possible.
"The principal competition issues are likely to be linked to the sale of stores to the major supermarket groups, Woolworths and Coles.
"The ACCC had expressed concern regarding an earlier proposal which involved the sale of a larger number of stores to Woolworths".