This is after the Federal Court of Australia dismissed the Australian Competition and Consumer Commission's (ACCC) application for a temporary injunction to prevent the purchase ahead of its appeal being heard in October.
In August, the antitrust authority lost its Federal Court bid to stop the deal.
The ACCC has been opposed to the deal, citing concerns about the effect it would have on wholesale grocery distribution in New South Wales.
However, Justice Arthur Emmett last month said he was not persuaded that there was a separate market for the wholesale supply to independent supermarket retailers of packaged groceries, as the commission defined in its claim.
"The commission has based its case solely on there being a separate market for the wholesale supply to independent retailers of packaged groceries, as defined. The commission's pleaded case as to market definition has not been made out," Emmett ruled.
After failing to gain sufficient scale in the Australian retail environment, which is dominated by Coles and Woolworths, analysts lauded the South African retailer's decision in July last year to quit the market.
"From the outset we have been confident in the merits of our legal arguments and our position was vindicated by the comprehensive judgment in our favour in the Federal Court late last month. We are optimistic the appeal court will reach a similar conclusion," chairman of Pick n Pay, Gareth Ackerman, said on Tuesday.
A protracted appeal process was likely to have a strongly negative impact on Franklins' already weakened financial position, which has deteriorated after ruthless targeting by other major supermarket chains and the weak consumer environment.
However, proceeding with the deal ahead of a final appeal court decision will be risky for Pick n Pay and Metcash, given the potential requirement to unwind the transaction.
Pick n Pay intends to use the proceeds from the sale to ramp up its distribution centres.
"The successful exit of our Australian investment stands to realise significant capital which Pick n Pay can then redeploy to other parts of the business," Ackerman said.
The deal was valued at R1.4 billion, but analysts believe that due to the delays and financial position of Franklins, the group will receive less than it had hoped for.
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