ACCC flags Woolworths (ASX:WOW) acquisition of PFD

The ACCC has outlined preliminary competition concerns with Woolworths’ (ASX:WOW) proposal to acquire 65 per cent of PFD Food Services.

PFD is a wholesale food distributor, buying a wide range of food products from manufacturers and distributing them to food service businesses such as restaurants and cafés, fast food franchises, hotels and clubs.

The ACCC is concerned that the proposed acquisition seems likely to increase Woolworths’ already substantial bargaining power in its dealings with food manufacturers.

The ACCC is also considering whether the proposed acquisition could affect downstream competition.

The ACCC’s final decision will be announced on 22 April 2021.

Shares in Woolworths’ (ASX:WOW) are trading 0.7 per cent higher at $39.43.
 
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Source: Finance News Network