Metcash Ltd (ASX: MTS), the country's largest wholesale and distribution company, today openly defied the Australian Competition and Consumer Commission by announcing its plan to pursue its attempted takeover of Franklins.

Metcash and South Africa's Pick n Pay Retailers (Pty) Ltd, the current owner of Franklins, have agreed to extend the cut off date in their agreement in relation to the acquisition of the issued shares in Interfrank Group Holdings Pty Ltd to June 30, 2011, the Sydney-based company said in a statement on Tuesday.

It said it had notified the ACCC that it intends to take further steps to proceed with the proposed transaction in not fewer than five business days from today.

Metcash's announcement follows the ACCC's decision on November 17 to oppose the deal citing concerns that it would reduce competition in the supply of wholesale packaged groceries in New South Wales.

The ACCC began a review of the proposed transaction after Franklins' parent company, Pick n Pay Stores Ltd of South Africa, announced on July 1 it had decided to sell Franklins to Metcash.

Metcash's decision today is the first time since 2033 that a company has directly challenged an ACCC ruling in court.