Woolworths Ltd - proposed acquisition of Cherricoe Pty Ltd's liquor licence in Tamworth NSW
Type of assessment
Informal Review
Reference
25543
Acquirer(s)
Woolworths Ltd
Target(s)
Cherricoe Pty Ltd's liquor licence in Tamworth NSW
Industry
Liquor
Summary
Woolworths Limited (Woolworths) proposes to acquire a liquor licence from Cherricoe Pty Ltd in Tamworth, New South Wales.
Outcome of assessment
Not opposed
Total review days *
11
Commenced public review
21st September 2006
Date completed
6th October 2006
Market definition
Market 1: The retail market for packaged liquor for off-premises consumption within a 3-5 kilometre radius surrounding the target firm.
Market 2: The New South Wales market for wholesale supply of packaged liquor for subsequent retail sale for off-premises consumption.
Competition analysis
In relation to the retail market for packaged liquor for off-premises consumption, the ACCC formed the view that Woolworths will continue to have significant competition from independent competitors and other retail chains. This competition is likely to provide a sufficient constraint on the merged entity to prevent any attempt to increase prices as a result of the acquisition.
In terms of the New South Wales market for wholesale supply of packaged liquor for subsequent retail sale for off-premises consumption, the ACCC formed the view that Woolworths' share of wholesale sales will only increase by a small volume.
After consideration of the information provided by market participants and other information before it, the ACCC formed the view that the proposed acquisition in the two markets outlined above is unlikely to result in a substantial lessening of competition, and decided that it would not oppose the acquisition.
Review timeline
Date
Event
21st September 2006
ACCC commences assessment under Merger Review Process Guidelines
5th October 2006
Closing date for submissions from interested parties
6th October 2006
ACCC announced that it would not oppose the acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
