Hong Kong conglomerate expected to put 287-strong discounter up for sale Despite persistent rumours Aldi has denied it is a front runner in a potential bidding war for Australian discount chain Franklins, which parent company Dairy Farm International could put on the market soon. Hong Kong based Dairy Farm is widely expected to put some or all of the 287-strong chain up for sale following a review of its Australian operations due for completion by the middle of next month. Local press reports suggest Franklins could serve as a possible entry vehicle to the Australian retail market for a foreign player such as Ahold or Wal-Mart, but analysts believe the stores are probably too small to interest the US giant, while Ahold has been scaling down its activities in Asia Pacific. "It's not beyond the realm of possibility that Ahold might take a look at Franklins, but I imagine it's way down the shopping list," noted one observer. By contrast, Aldi has already put down roots in New South Wales, where the majority of Franklins stores are concentrated. Despite the denials, observers point out Franklins stores are of a similar size to those run by the German retailer. Australian anti-trust authorities have also indicated a bid from domestic giants Woolworths or Coles Myer would almost certainly prompt regulatory concerns. Franklins is at third place in a retail market dominated by Woolworths and Coles Myer, which between them control almost 70% of the domestic market. Competition Commission chairman Allan Fels said: "It's difficult to see how any acquisition by either (Coles Myer or Woolworths) would not be a problem." Domestic players, including Foodland and Metcash Trading, may also be interested in some stores but that would not tackle the market stranglehold. {{NEWS }}

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