Australia's Woolworths chain has restated its interest in buying its New Zealand namesake if a rival suitor's bid was blocked by competition regulators.
Progressive Enterprises is keen to acquire Woolworths New Zealand, a move which would see the combined company controlling 46 per cent of the supermarket sector.
But due to a
legal wrangle over its initial application, Progressive's bid has had to make a second application for Commerce Commission clearance, under a new, stricter regime.
Progressive is owned by Australian company Foodland, one of Woolworths Australia's two biggest rivals.
Woolworths' interest across the Tasman was repeated in the Australian Financial Review today.
The company, which held its annual meeting on Friday, said it was confident of a strong Christmas trading period, as Australian consumers continue to spend in spite of the fallout from the September 11 terrorist attacks.
Woolworths' sales were up 13 per cent in the first 21 weeks of the financial year, an improvement on the 13-week mark, when sales were up 11.6 per cent.
"This country is a bit stronger than we thought it was," Woolworths' managing director, Roger Corbett, said after the meeting in Brisbane.
Mr Corbett said Woolworths, which has bought petrol stations, the Tandy electronics retail chain, liquor stores and 71 Franklins supermarkets over the past year, might make more acquisitions if opportunities arose.
"We are growth-orientated," Mr Corbett said. "We are all the time on the lookout for businesses where we can use our low-margin, high-volume skills."
Woolworths is now predicting earnings per share will range from A46.50c (59.18c) to A49c.
The comments helped buoy Woolworths' shares, which rose 25c on Friday to $A11.17, after trading as low as $A7.62 in February.
New Zealand's Commerce Commission initially approved the Progressive-Woolworths NZ merger, but rival supermarket operator Foodstuffs, which has about a 50 per cent market share in supermarkets through its New World, Pak 'N Save and Four Square brands, appealed and won a victory in the Court of Appeal last month.
Foodstuffs argued the merger would be detrimental to competition.
- NZPA
