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Australian-based retailer Woolworths has lodged an appeal against the Commerce Commission's decision to reject its bid for The Warehouse.
The commission released its decision a week ago to block both Woolworths and supermarket rival Foodstuffs from buying the The Warehouse, in which both of the suitors have a 10 per cent stake.
Commission chairwoman Paula Rebstock said the commission was not satisfied either of the proposed acquisitions would not have, or would not be likely to have, the effect of substantially lessening competition in the relevant markets.
The commission has yet to publish the reasons for its decisions.
Today Woolworths said in a statement it had lodged an appeal with the High Court of New Zealand seeking to overturn the decision.
Woolworths said it did not believe that if it bought The Warehouse an effective competitor would be removed from any market, or competition substantially lessened.
The matter needed to be resolved promptly for the benefit of its shareholders and The Warehouse shareholders, employees, customers and suppliers, Woolworths said.
Woolworths said it was prepared to pursue a proposal to buy The Warehouse and was committed to ensuring an outcome was achieved in as little time as possible.
Foodstuffs managing director Tony Carter said the co-operative was still considering its position and had plenty of time to file an appeal.
Before announcing it had blocked the takeover bids, the commission delayed a decision four times in the six months since the applications were made.
At one point after today's announcement by Woolworths, shares in The Warehouse were up 12c to $6.09c, but later retreated to be just 1c up for the day at $5.98.
- NZPA
