ACCC appeals Metcash decision: what's at stake?

The ACCC will appeal against the Federal Court's rejection of its attempt to block Metcash's acquisition of the Franklins supermarket business.

The outcome of the appeal is likely to have a major impact on the ACCC's approach to future mergers and acquisitions. If Justice Emmett's view of the correct test is upheld, the ACCC could face a much tougher challenge in the future in its consideration of the competition aspects of mergers.

What will the ACCC base its appeal on?

The ACCC has identified two key grounds of appeal:

• the Court erred in its approach to market definition by failing to identify a relevant market for the wholesale supply of packaged groceries to independent retailers; and