Australia's largest retailer, Woolworths Ltd, says it will oppose the appeal by the New Zealand Commerce Commission (NZCC) against the NZ High Court's decision to allow the grocer to bid for The Warehouse Group.
Before the New Zealand share market opened today, the Commerce Commission announced it would
seek leave to appeal the decision which cleared the way for co-operative Foodstuffs and Australian-based Woolworths to bid for The Warehouse, which is listed both in NZ and in Australia.
Woolworths said today it was surprised, that further delay in settling the matter would cause more uncertainty for The Warehouse shareholders.
"In that decision, the High Court found against the Commerce Commission and confirmed that the regulator should not have denied Woolworths clearance to acquire the assets or shares of The Warehouse Group," Woolworths said in a statement.
"In light of the very clear findings of the Court, Woolworths is surprised and disappointed that the NZCC is seeking to appeal the High Court's judgement and notes that there has been a delay of almost a year since Woolworths sought initial clearance.
"Should the appeal be granted, it would result in further delay, prolonged uncertainty for The Warehouse shareholders and creates significant ambiguity for companies wishing to invest in the New Zealand market."
The interested parties are looking to grow the 10 per cent stake in the Auckland-based group they each already hold, after last month's High Court decision overturned a NZCC ruling that had earlier blocked bids from Woolworths and Foodstuffs.
The Warehouse has 85 general purpose stores across New Zealand.
Today, Commission chairwoman Paula Rebstock said that appealing the court judgment was important given the precedent it set for competition law in NZ, and the implications for the long term interests of supermarket consumers.
The Commission said it was seeking to have the matter dealt with urgently.
It was today filing an application for leave to appeal the High Court judgment, and was also seeking a stay of execution of the judgment pending the determination of the appeal.
- AAP
