Business

Foodstuffs North and South Islands proposed merger on hold

10:40 am on 21 June 2024

The co-ops operate the Four Square, New World and Pak'nSave brands. Photo: Supplied

The Commerce Commission has delayed its decision on the proposed merger of supermarket operators Foodstuffs North and South Islands.

The competition regulator was due to make a decision on Friday, but it has extended the date to 1 October.

The co-ops operate the Four Square, New World and Pak'nSave brands.

The commission said it would release a statement of unresolved issues in due course and outline problem areas with the proposed merger.

It would then invite further submissions from the co-ops and other interested parties.

"A statement of unresolved issues is not a final decision and does not mean that the commission intends to decline or clear the merger," it said.

The two co-ops voted in favour of the merger earlier this month.

Earlier this week, the commission reached a settlement with Foodstuffs North Island over historical anti-competitive behaviour, for blocking rivals from setting up shop.

The proceedings were before the High Court.

It was understood the commission was looking at other operators for anti-competitive behaviour.

Foodstuffs' rival Woolworths said it was not facing Commerce Commission action for anti-competitive behaviour.