The Commerce Commission has delayed its decision on the proposed Foodstuffs merger.
Foodstuffs North Island and Foodstuffs South Island currently operate as separate co-operatives. On Friday, the Commerce Commission was expected to release its decision on whether the two can merge into one mega-entity.
However, the commission released a "statement of unresolved issues" for the merger application on Friday, extending the decision until October 1.
"A statement of unresolved issues is not a final decision and does not mean that the commission intends to decline or clear the merger," it said.
It comes after suppliers expressed concerns over the proposed merger, saying New Zealand will go from "duopoly light, to duopoly full-strength".
"I'm shit scared this [merger] will put me out of business," said one small grocery product manufacturer who supplies Foodstuffs South Island. "What if they don't pick me for national distribution?"
Foodstuffs argues merging its North and South Island operations will be good for the co-operative, suppliers and shoppers. The business can do things "faster and better" as a national co-op, it claims.
However, consumer advocates and suppliers believe if one mega-entity is allowed to control the vast bulk of the country's grocery market from a single head office, things will get much worse for shoppers and suppliers.
Earlier this month, its 332 North Island grocery store owners and 198 South Island owners voted overwhelmingly in support of the merger.
Newshub.
