ACCC will not appeal Metcash-Franklins dealPublished 4:02 AM, 6...

ACCC will not appeal Metcash-Franklins dealPublished 4:02 AM, 6 Dec 2011 Last update 4:02 AM, 6 Dec 2011

The Australian Competition & Consumer Commission (ACCC) has decided not to appeal to the High Court in a last-ditch effort to prevent Metcash Ltd from buying the Franklins grocery chain, bringing to an end the regulator's opposition to the deal and several court rulings against the ACCC over the issue, according to a report by The Australian.

The ACCC had argued that the $215 million deal would hurt competition in the wholesale supply of packaged groceries, namely to independent retailers in NSW and the ACT.

However, the regulator's latest defeat came last week when a fourth Federal Court judge ruled against the ACCC.

ACCC chairman Rod Sims yesterday said the regulator would accept the court's ruling, but said the ACCC would continue to judge deals on their likely effect on competition, which was a key part of the Metcash-Franklins case.

“The ACCC agrees that in relation to any acquisition it must consider the likely effect on competition, based on commercially relevant facts, assessments and evidence, and speculative possibilities,” he said, according to The Australian.