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Supermarket co-operative Foodstuffs has decided against taking its fight over the right to bid for retailer The Warehouse to the Supreme Court.
Four weeks ago the Court of Appeal released a decision preventing Foodstuffs and rival Australian-owned Woolworths from launching takeover bids for The Warehouse.
Woolworths has since said it would seek leave from the Supreme Court to appeal the Court of Appeal's decision.
Today Foodstuffs managing director Tony Carter said the co-operative would not be appealing the Court of Appeal decision as the basis of its case was essentially the same as Woolworths, and Woolworths was lodging an appeal.
"If Woolworths' appeal to the Supreme Court is successful and Woolworths is granted a clearance, Foodstuffs will also face no competition issues if it decides to purchase further shares in The Warehouse," Carter said.
"If Woolworths' appeal is unsuccessful, again, both companies are in the same position.
"We have previously put some strong arguments to the commission and the courts as to why any acquisition would be lawful. I am comfortable that the Supreme Court will be in a position to properly consider the issues," he said.
Foodstuffs' view continued to be that a High Court decision granting clearances to acquire The Warehouse was correct.
"We will await with interest the outcome of the Woolworths appeal and as we have consistently said, we would not rule anything in or anything out going forward," said Carter.
Foodstuffs and Woolworths each have 10 per cent stakes in The Warehouse and went to the High Court to overturn a Commerce Commission decision to block any potential takeover.
- NZPA
