A moratorium stopping Woolworths and Foodstuffs bidding for The Warehouse while court action was under way has been extended to 48 hours after the Court of Appeal issues its judgment.
Initially, the companies agreed not to bid for The Warehouse until May 1 pending court action.
New Zealand-owned
Foodstuffs and Australia's Woolworths each have 10 per cent stakes in The Warehouse, and successfully went to the High Court to overturn the Commerce Commission decision to block any potential takeover. The commission is now appealing against that decision.
The Court of Appeal judges have reserved their decision.
In the meantime, they have issued a stay stopping the companies making moves to acquire The Warehouse Group until two days after thejudgment is issued.
Woolworths and Foodstuffs have argued that if either was successful with bids, grocery competition would remain strong.
The commission argued that allowing one of the rivals to swallow The Warehouse would destroy an opportunity that could result in cheaper groceries.
Between them, Woolworths and Foodstuffs account for about 99 per cent of the grocery market, but despite the duopoly, margins have been described as slim and competition intense.
Foodstuffs, a co-operative, runs the New World, Pak 'N Save and Four Square brands. Woolworths bought Progressive two years ago and runs the Foodtown, Countdown and Woolworths brands.
- NZPA
