ACCC to probe Woolworths’ planned takeover of PFD Food Services
Woolworths Group’s plan to acquire a controlling interest in food and grocery supplier PFD Food Services will be subject to a formal review by competition regulator, the Australian Competition & Consumer Commission (ACCC).
The grocery giant has proposed acquiring 65 per cent of PFD along with 26 freehold properties which the smaller business uses as distribution centres.
Privately owned PFD supplies and delivers fresh, frozen and dry goods to business customers across Australia, serving supermarkets, quick-service restaurants including major national franchisee brands, and other foodservice business such as hotels, restaurants and cafes, petrol stations, convenience stores, bakeries, airlines and institutions.
Having commenced an informal review under the guidelines, the ACCC will accept submissions on the proposal up until October 9 before deliberating and releasing findings on December 10.
The commission will be considering potential detriment to marketplace competition by allowing the businesses to effectively merge and operate together rather than as competitors.
Besides being one of Australia’s largest food and grocery retailers, Woolworths supplies food and groceries to businesses via its Australian Grocery Wholesalers business and the Woolworths at Work platform.