The Australian Competition & Consumer Commission has announced its investigation into Woolworths Group’s proposed acquisition of a 65 per cent shareholding in PFD Food Services, including its 26 freehold properties used as distribution centres.
The proposed $552 million deal was announced in August with $302 million for the 65 per cent equity interest and the distribution centres purchased for $249 million and leased back to PFD.
The ACCC said its investigation is focused on the proposal’s impact on competition, particularly:
- whether and how Woolworths and PFD compete in the supply of food and groceries;
- whether there are alternative wholesale suppliers of food and groceries with similar geographic reach and product range to that of PFD; and
- whether the proposed acquisition will increase Woolworths’ position as a wholesale buyer of food and the possible impacts of this.
Submissions close 9 October at 5pm.