Commerce Commission receives proposal for Foodstuffs' merger

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A trolley of groceries containing some Foodstuffs’ branded products.
Photo: Suppled / Foodstuffs

The Commerce Commission has received an application from the country’s biggest supermarket operator to merge its various businesses.

The boards of Foodstuffs North and South Island, which operate as separate co-ops, announced a proposal to merge the two last month.

They run a number of well-known brands, including New World, Pak’nSave and Four Square.A trolley of groceries containing some Foodstuffs’ branded products.

The co-ops said a merger would remove duplication, simplify the business and save costs.

The Commerce Commission said a statement of preliminary issues and call for submissions would likely be released by mid-January.

The competition regulator would give clearance to a proposed merger if it was unlikely to lessen competition in the market.

Foodstuffs North and South Island have previously said that if the merger proposal received clearance, each co-operative would hold a special general meeting in June, where members would vote on the merger.

Foodstuffs has previously said the merger would not result in changes to its supply chain networks serving its members and customers.

It said combining the two would make the co-ops more efficient and deliver “better value” for consumers.