Foodstuffs is set to apply to the Commerce Commission to merge its North Island and South Island co-operatives into one national business.

The company is half of New Zealand’s supermarket duopoly - and expected to spark big debate on competition issues.

Foodstuffs North Island CEO Chris Quin says this merger is part of a strategy focused on creating better value to customers.

"Like any business, we have to look harder at our cost base- and also where our energy and efforts are going."

LISTEN ABOVE