Australian supermarket operators Foodland Associated saw its shares hit a record high today [Tuesday] due to continued rumours that the company could be taken over by one of its major competitors.
Since Foodland expanded its operations in New Zealand through an acquisition almost two years ago, Australia’s Woolworths has been rumoured to be interested in a takeover of its smaller rival, reported Reuters. Foodland owns 75 Action supermarkets in Australia and 152 Progressive supermarkets in New Zealand.
Woolworths recently reported a 13% rise in first half net profit, and has said it is able to make a large acquisition if the opportunity arose.
Foodland is Australia’s third-largest supermarket company after Woolworths and Coles Myer, but it is the second-largest supermarket firm in New Zealand, with a grocery market share of around 44%.