SYDNEY, AAP – Woolworths’ takeover of PFD Food Services will go ahead despite concerns the supermarket giant may change food distribution.
The Australian Competition and Consumer Commission on Thursday allowed Woolworths to buy 65 per cent of shares in PFD for $552 million.
The watchdog said PFD competitors were concerned Woolworths may lower prices for customers such as cafes and restaurants so it could rapidly win market share.
Yet chair Rod Sims said many food suppliers were unconcerned as PFD made up about two per cent of their market.
Woolworths said PFD would continue operating independently and have a separate board of directors.
The purchase will be completed by the end of June.
PFD chief executive Kerry Smith said customer and supplier relationships would remain unchanged by the investment.
Woolworths shares were up 0.26 per cent to $42.74 at 1144 AEST.