KEY POINTS:
Woolworths is withdrawing a challenge in the Supreme Court to a Commerce Commission decision stopping it taking over The Warehouse.
But the Australian retailer is not saying if it will re-apply to the commission for permission to take over The Warehouse.
Supermarket operators Woolworths and rival Foodstuffs were both denied permission to take over The Warehouse by the commission. The Warehouse is now closing down its Warehouse Extra stores, which sell food as well as general merchandise.
The success or failure of the stores as a competitor to the two established supermarket giants was an issue in dispute in the court case.
Last week in a submission in opposition to Woolworths' application for leave to appeal, the commission argued Woolworths should simply now re-apply to it.
"The appropriate course, where there are truly new and relevant market facts, is for Woolworths to re-apply for clearance so that the commission can consider the material that was not available to it at the time of the original clearance application," it said.
Woolworths and Foodstuffs each own 10 per cent of The Warehouse and Stephen Tindall and family interests have 52 per cent.
Woolworths said in a statement today that it has made no decision in respect of its holding in The Warehouse or any proposal.
"Woolworths continues to monitor the performance of The Warehouse, the New Zealand retail climate, financial market conditions and the outlook for the New Zealand economy."
It said the market characteristics upon which the commission based its rejection of Woolworths' application had fundamentally changed.
Therefore there was no reason to continue with the application for leave to appeal.
- NZPA
