Chapter 1 - Introduction

Referral

1.1        On 23 November 2010, the Senate referred to the Senate Economics References Committee for inquiry the decision of the Australian Competition and Consumer Commission (ACCC) to oppose the proposed acquisition of the Franklins supermarket business by Metcash Trading Limited, with particular reference to:

• the basis of the ACCC decision to oppose the proposed purchase;
• the competition impacts of the decision at the retail and wholesale levels;
• whether the Franklins' distribution warehouses, supplying eight franchised stores, could be regarded as an independently sustainable wholesale business; and
• any other related matters.

The Senate initially asked the committee to report by 17 December 2010, but this was extended to 28 February 2011. The committee presented an interim report on 6 December 2010.

Conduct of the inquiry

1.2        The committee advertised the inquiry in The Australian on 8 December 2010 and invited written submissions by 29 November 2010. The committee received six public submissions and one confidential submission.[1] The public submissions are listed in Appendix 1.

1.3        The committee thanks those who participated in the inquiry.

Structure of the report

1.4        This report has three chapters. Chapter 2 describes the proposed acquisition and notes the committee's evidence regarding the terms of reference. Chapter 3 discusses the proceedings related to this matter currently underway in the Federal Court of Australia, which were instituted after the Senate referred this matter for inquiry.

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