29 Nov 2007
WOOLWORTHS LIMITED V FOODSTUFFS (AUCKLAND) LIMITED; FOODSTUFFS (SOUTH ISLAND) LIMITED; FOODSTUFFS (WELLINGTON) CO-OPERATIVE SOCIETY LIMITED ("FOODSTUFFS") AND ORS HC WN CIV 2007-485-1255
- Citation
- openlaw-9389d5ea_a1ac_4613_b538_1df1dbe894fc.pdf
- Court
- High Court
On the evidence the Warehouse Extra was unlikely to roll out and establish the halo effect necessary to become a material competitive constraint; supermarkets operate in a low‑margin/high‑turnover sector where price rises above roughly 2% would be cause for concern; applying counterfactual analysis the Court found no real and substantial prospect that the independent Warehouse Extra would materially constrain Woolworths and Foodstuffs, so acquisition by either would not be likely to substantially lessen competition—appeals allowed and clearances granted.