Woolworths still on Progressive's agenda

Progressive's owner, Perth-based Foodland Associated (NZSE: FAL), says the company plans to lodge documents with the New Zealand High Court later this week which will preserve Progressive's right to appeal an earlier rejection from the Commerce Commission.

"We have also taken the necessary steps to preserve the right to appeal to the Privy Council the decision of the New Zealand Court of Appeal concerning Progressive's original clearance," says Foodland's group MD, Trevor Coates.

"Although a final decision to appeal the case has not yet been made, Progressive has made preliminary arrangements to have the case heard in late April 2002."

Progressive made its interest in Woolworths NZ known in May last year and was initially granted Commerce Commission clearance. However after pressure from rival supermarket operator, Foodstuffs, Progressive was forced to apply under stricter competition guidelines and its application was turned down.

Foodstuffs is the leading supermarket operator in New Zealand with around 55% market share followed by Progressive with 21% and Woolworths NZ with 19%.

Last December Woolworths NZ owner, Hong Kong-based Dairy Farm, said it intended holding on to its New Zealand subsidiary, which it claims is both a very successful and profitable business.

While Mr Coates admits Dairy Farm may decline to consider any offer, he says unless the present legal impediments to Progressive's acquisition are removed, the company won't be in a position to hold meaningful discussions with them.

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