Australia’s largest independent grocery and liquor wholesaler, Metcash Trading Limited (Metcash), announced on August 25 that it is now free to acquire Franklins chain of supermarkets from Pick ‘n Pay Retailers (Pty) Ltd.

In a statement posted on its website, Metcash said the Federal Court has dismissed an application by the Australian Competition and Consumer Commission (ACCC) seeking to prevent Metcash's acquisition of the Franklins chain of supermarkets from Pick ‘n Pay.

"Metcash is now free to acquire Franklins which comprises 80 corporate stores plus supply to 10 franchised stores all of which are located in New South Wales," the company said.

Metcash is Australia’s national independent marketing and distribution company specialising in grocery, fresh produce, hardware, liquor and other fast moving consumer goods. It owns the IGA supermarkets.

In July last year, Metcash said it entered into an agreement with Pick n Pay to acquire the shares of Interfrank Group Holdings Pty Ltd, the company which owns the Franklins business for $215 million

Metcash had proposed selling the stores to independent IGA retailers.

“The IGA network will significantly improve its competitive position against the national chains in Australia’s largest grocery market, NSW, while growing the market share of Metcash supplied retailers in the state from 11 per cent to 17 per cent," Metcash Chief Executive Mr Andrew Reitzer said when the announcement was made last year.

Metcash said the acquisition is expected to add more than $500 million to its annual wholesale sales.

As this developed, Metcash said it dropped toilet paper products it sources from Asia Pulp and Paper (APP) to address concerns of the destruction of Indonesia forests.

Metcash also said in a separate announcement that it was alerted to footage on the condition of a Sumatran Tiger apparently due to habitat destruction.

Metcash said the footage had nothing to do with Solaris but "continuing questions about Asia Pulp and Paper, have resulted in Metcash making the decision to find alternate supply for our IGA Signature and Black & Gold products."

"This is with immediate effect," it said.

Metcash said it remains committed to ensuring environmental and social sustainability in its business practices, products and suppliers.

Greenpeace welcomed the decision from Metcash's move and called for other businesses in Australia to follow.

“APP paper products made from rainforest destruction are still being sold in other retail stores and used in hotels across Australia,” Greenpeace Forests Campaigner Reece Turner said in a statement.

“Greenpeace is urging these companies to look behind APP’s greenwashing at the hard evidence of their destruction of Indonesia’s last remaining rainforests,” he added.