A PYMNTS Company

Business Groups Urge Australian Watchdog To Block Woolworths’ PFD Deal

By  |  February 3, 2021

Small business groups are urging the competition regulator to block Woolworths’ proposed acquisition of family-run PFD Food Services.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In a letter to the Australian Competition and Consumer Commission (ACCC) seen by SmartCompany, five food service and retail industry organisations have called on the regulator to stop the AU$552 million (US$421.7 million) merger, which they say will boost “the already unfair” market power held by the supermarket giant.

    The merger would see Woolworths Group acquire 65% of PFD Food Services. The Smith family would retain 35% of its shareholding and continue to operate as a standalone business while partnering with Woolworths.

    Council of Small Business Organisations Australia (COSBOA) chief executive Peter Strong signed the letter, noting the acquisition would result in a distribution chain “dominated” by a Woolworths-owned entity, which would inhibit small businesses along the supply chain.

    “At the moment, we have a more diverse distribution system, which means the smaller players get to have a business model that works for them,” Strong told SmartCompany.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.