The Commerce Commission said today it had agreed to a further delay on its decision on competition clearance for separate takeover applications by Woolworths and Foodstuffs for The Warehouse.
A decision was due today but it has been extended to Friday, May 25.
Foodstuffs and Woolworths each own
10 per cent of The Warehouse.
On December 21 the commission received an application from the three Foodstuffs co-operatives seeking clearance to acquire The Warehouse.
Then, on January 17, the commission received a similar application from Woolworths.
The commission has to decide if a takeover would substantially lessen competition in a market.
Analysts have said a successful bidder may have to pay up to $8 a share, with Woolworths favoured because of its stronger balance sheet.
The Warehouse's founder Stephen Tindall still controls 51 per cent of the stock, and has yet to make a public comment on the competing interests for the company.
Woolworths owns Progressive Enterprises which runs the Countdown, Woolworths NZ and Foodtown chains, while the cooperative Foodstuffs runs the New World, Pak n' Save and the Four Square chains.
The Warehouse shares closed yesterday at $7.10 and has a market capitalisation of $2.2 billion.
- NZPA
