A decision on the next stage in the Commerce Commission’s evaluation of the proposed merger of New Zealand supermarket co-operatives Foodstuffs North Island and Foodstuffs South Island has been pushed out by another three weeks.

The Commerce Commission has set a new deadline of June 21 in place of May 31.

Foodstuffs accepted the extension – by which the commission must decide whether to clear the application or issue a Statement of Unresolved Issues – and expressed commitment to working constructively with the commission.

Last December, the two non-competing co-operatives applied to the commission for clearance to merge into one nationwide co-op.

According to the co-ops, the proposed merger aims to enhance the company’s agility, competitiveness, and efficiency while delivering consumer value and innovation. 

“It makes sense – that’s why all other major retailers operate nationally, not as two regional island businesses,” it continued. 

Foodstuffs also emphasised that the merger would not substantially lessen competition in any market or harm suppliers.

The co-op shared several reasons to support the merger, including the efficiency of operating as one national business and a continued focus on delivering the best experience, range, innovation, and value. 

Moreover, the merger aims to support the growth of emerging New Zealand suppliers and to comply with the mandatory Grocery Supply Code, which came into force in March.

“Our respective boards have been clear that a merger must deliver meaningful benefits for all stakeholders: customers, members, teams, suppliers, and communities,” Foodstuffs concluded. 

“We’re accountable for making sure it does.”