Woolworths Limited - proposed acquisition of dormant hoteliers licence in Bega owned by Nutters Hotels Pty Ltd
Type of assessment
Informal Review
Reference
30948
Acquirer(s)
Woolworths Limited
Target(s)
Nutters Hotels Pty Ltd
Industry
Liquor licence
Summary
Woolworths proposed to acquire a dormant hoteliers licence located in Bega.
Outcome of assessment
Not opposed
Total review days *
18
Commenced public review
25th January 2008
Date completed
20th 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. The liquor licence is to be relocated within the central business district of Bega. (Market 1);
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 20 February 2008, the ACCC formed the view that the proposed acquisition is unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:
1. in relation to Market 1, the ACCC considered that the existence of other competitors in the local area would be likely to continue to competitively constrain Woolworths post-acquisition; 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
25th January 2008
ACCC commenced review under the Merger Review Process Guidelines.
8th February 2008
Closing date for submissions from interested parties.
20th 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.
