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Western Australia-based grocery chain Foodland Associated could see its share price soar to A$20 (US$10.7) if its subsidiary successfully negotiates a deal to buy out Woolworths New Zealand (NZ).

Market analysts predicted the surge after the Privy Council decided earlier this week to allow Progressive, Foodland’s NZ subsidiary, to bid for the supermarket chain, prompting renewed interest in the potential acquisition.

According to the West Australian newspaper, Woolworths NZ is expected to sell for between A$600m and A$650m.