Metcash, Australia’s largest grocery and liquor wholesaler, is confident of completing its acquisition of Franklins chain of supermarkets from Pick ‘n Pay Retaiers (Pty) Ltd. at the end of September, company chief executive Andrew Reitzer said.

In his presentation for the company's Annual General Membership meeting, Reitzer hoped to conclude its $215 million acquisition of Franklins but the company would have to wait until the Australian Competition & Consumer Commission submits an appeal within 21 days.

"Metcash is now free to acquire Franklins. Federal Court dismissed ACCC application to prevent the acquisition. Hope to be in position to complete acquisition by September 30," Reitzer said.

Reitzer told The Australian that the ACCC has about three weeks to file an appeal.

"We are ready to rock 'n' roll, but we have to wait 21 days -- we are hoping to complete the deal by the end of September," The Australian said, quoting Reitze after the company's annual meeting in Sydney held recently.

The acquisition is expected to increase Metcash's market share in NSW to 17% from 11%.

Reitzer said consumer spending has been curtailed due to the uncertain economic conditions.

"It's a very tough market out there. Price deflation of some supermarket items are continuing and out of the basket of goods shoppers buy, 50 per cent are on discount," he was quoted as saying.

He said Metcash's IGA supermarket chain will have to continue giving discounts of as much as 50 percent.

"Four years ago, about 20 to 25 per cent of items were on discount. Now its 50 per cent -- I have never seen conditions that bad before," he said.

Reitzer, meawhile said Metcash received 200 expressions of interest for the 80 Franklins supermarkets that would be sold to IGA franchisees.

The sale is expected to generate wholesale sales of up to $500 million for Metcash.

"We've had more than 200 expressions of interest from IGA franchisees who want to buy the Franklins stores," he said.

Metcash anticipates the complete sell-down of the 80 Franklins supermarkets to IGA franchisees in 9 to 12 months.