SYDNEY, Nov 29 (Reuters) - Australia's competition regulator plans to take court action to prevent grocery wholesaler Metcash from buying the Franklin grocery chain in Australia from South Africa's Pick n Pay, Metcash said on Monday.
The Australian Competition and Consumer Commission (ACCC) opposes Metcash's $210 million bid for Franklins on the grounds it would create a grocery wholesale monopoly in Australia's most populous state, New South Wales.
Metcash last week extended the cut-off-date for the takeover, saying it planned to proceed despite the ACCC's objection. On Monday, it revealed the ACCC had notified it of a plan to seek a court order preventing Metcash from going ahead with the deal.
"Metcash is delighted to have the opportunity for the Federal Court to determine whether we can proceed with the transaction," Metcash Chief Executive Andrew Reitzer said in a statement.
"We clearly have different views to the ACCC regarding the Australian grocery market and what will ultimately be in the best interests of all consumers," Reitzer added.
"We consider that it will be in all parties' interests for these issues to be authoritatively determined by the Federal Court as soon as possible."
Pick n Pay is selling the chain so it can focus on pushing further into fast-growing Africa, but if the Metcash bid is prevented, it will likely have to sell the business piecemeal, delaying its pull-out from Australia, say analysts.
(Reporting by Michael Perry; Editing by Mark Bendeich)