Metcash Ltd (ASX: MTS), the country's largest wholesale and distribution company, says it welcomes the Australian competition watchdog's court action aimed at preventing it from acquiring Franklins.

The Australian Competition and Consumer Commission (ACCC) has undertaken to commence proceedings to seek an injunction against Metcash's proceeding with the buyout of the shares of Interfrank Group Holdings Pty Ltd, the owner of the Franklins chain of supermarkets, from South Africa's Pick n Pay Retailers (Pty) Ltd.

Metcash chief executive Andrew Reitzer said "Metcash is delighted to have the opportunity for the Federal Court to determine whether we can proceed with the transaction.

"We clearly have different views to the ACCC regarding the Australian grocery market and what will ultimately be in the best interests of all consumers."

"We consider that it will be in all parties' interests for these issues to be authoritatively determined by the Federal Court as soon as possible", he said.

Today's court action comes as Metcash last week openly defied the ACCC by announcing plans to pursue the takeover of Franklins despite the watchdog's opposition.

The ACCC opposed the deal on November 17, citing concerns that it would reduce competition in the supply of wholesale packaged groceries in New South Wales.

Shares in Metcash closed flat on Friday at $4.32.