Metcash extends Foodland bid

Australian grocery wholesaler Metcash Trading has extended its $1.07 billion bid for grocer Foodland's Australian operations by seven days to June 4.

Metcash said it was still in talks with Foodland, owner of the New Zealand supermarket chains Countdown, Foodtown and Woolworths, and planned to make an announcement today.

Metcash originally hoped to strike a deal by the end of this week.

It plans to acquire all of Foodland, retain its Australian grocery wholesaling business and spin off and separately list the retail-focused New Zealand operations which provide about two-thirds of Foodland's earnings. Foodland shares lost 0.2 per cent to A$25.25 on Friday while Metcash shares slipped 0.3 per cent to A$3.38 in a flat overall market.

Meanwhile, Foodland is reported to have received offers for the New Zealand business valued at up to $2.1 billion. The Australian newspaper has said it understood the Foodland board had received separate offers for Progressive Enterprises, and may be attempting to marry Metcash with one of those parties to stitch together a joint full takeover bid.

The paper said Woolworths Australia, Pacific Private Equity, Newbridge and Bain had all made offers for the New Zealand business. Coles Myer is also seen as a contender if Woolworths makes a formal bid.

No-frills German grocery giant Aldi has confirmed it is eyeing the New Zealand market and may also be a possible interested party.

- Agencies and staff reporter