Warehouse saga heading to Supreme Court

Australian supermarket retailer Woolworths is taking its fight with the New Zealand Commerce Commission over its right to bid for retailer The Warehouse to the Supreme Court.

Woolworths said it would seek leave from the Supreme Court to appeal the recent decision of the Court of Appeal setting aside clearance for Woolworths to acquire The Warehouse.

The application for leave will be filed shortly.

In July the Court of Appeal overturned a High Court ruling that had allowed rival grocery firms to bid for discount retailer The Warehouse.

The appeal court's decision prevented Woolworths and New Zealand co-operative Foodstuffs from bidding for The Warehouse, this country's largest listed retailer, in a deal that could be worth over $2 billion.

Foodstuffs and Woolworths each have 10 per cent stakes in The Warehouse and last year successfully went to the High Court to overturn a Commerce Commission decision to block any potential takeover.

The Commerce Commission appealed that decision. It welcomed the appeal court's ruling as a "victory for supermarket consumers and competition in markets".  

- NZPA