Woolworths Limited - proposed acquisition of Glenorie Cellars
Type of assessment
Informal Review
Reference
31089
Acquirer(s)
Woolworths Limited
Target(s)
Glenorie Cellars
Industry
Liquor Retailing
Summary
Woolworths Limited proposed to acquire an off-licence and associated assets in Glenorie, NSW, currently trading as 'Glenorie Cellars'.
Outcome of assessment
Not opposed
Total review days *
9
Commenced public review
7th February 2008
Date completed
19th February 2008
Market definition
This proposed acquisition was assessed within the context of the following markets:
1. the local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5km radius surrounding the target retail liquor business (Market 1); and
2. the New South Wales market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 2).
Competition analysis
On 19 February 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:
1. in relation to Market 1, Woolworths owned no liquor outlets (either takeaway packaged liquor outlets or hotels) within the market. Accordingly, the proposed acquisition represented a bare transfer of market share; and
2. in relation to Market 2, the ACCC considered that the proposed acquisition of one liquor licence was unlikely to significantly affect the market share or buying power of Woolworths in the NSW wholesale market.
Review timeline
Date
Event
7th February 2008
ACCC commenced review under the Merger Review Process Guidelines.
8th February 2008
Market inquiries commenced.
15th February 2008
Closing date for submissions from interested parties.
19th February 2008
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
