Foodstuffs North and South Islands proposed merger on hold

The Commerce Commission has delayed its decision on the proposed merger of supermarket operators Foodstuffs North and South Islands.

The competition regulator was due to make a decision on Friday, but it has extended the date to 1 October.

The co-ops operate the Four Square, New World and Pak’nSave brands.

The commission said it would release a statement of unresolved issues in due course and outline problem areas with the proposed merger.

It would then invite further submissions from the co-ops and other interested parties.

“A statement of unresolved issues is not a final decision and does not mean that the commission intends to decline or clear the merger,” it said.

The two co-ops voted in favour of the merger earlier this month.

Earlier this week, the commission reached a settlement with Foodstuffs North Island over historical anti-competitive behaviour, for blocking rivals from setting up shop.

The proceedings were before the High Court.

It was understood the commission was looking at other operators for anti-competitive behaviour.

Foodstuffs’ rival Woolworths said it was not facing Commerce Commission action for anti-competitive behaviour.

According to the news on Radio New Zealand

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