It seems that the fears of the Australian Competition and Consumer Commission (ACCC), revolving green signal for the deal between grocery wholesaler Metcash and, the Franklins supermarket business could monopolies Metcash’s position, are coming true. It has been reported that the acquisition bid worth $215 million by Metcash has been accepted, though the ACC has made it clear that it would challenge the deal in Federal Court.

"We remain concerned that the proposed acquisition would remove any future ability for those independent retailers to choose from whom they get their grocery supplies”, said ACC Chairman Rod Sims, while sharing doubts over the Federal Court’s ruling.

Asserting that the deal would seize the opportunities for other retailers to flourish in the market, Mr. Sims claimed that they have sufficient proof indicating that independent retailers would face lack of competition once the deal is through, as the competition in the wholesale supply of packaged groceries in NSW and the ACT would die down.

Moreover, it’s being claimed that this business acquisition could put Metcash on such a strong platform that it will have the power to influence prices for independent supermarket retailers.