Liquorland (Qld) Pty Ltd - proposed acquisition of Hotel HQ and three detached bottleshops
Type of assessment
Informal Review
Reference
31095
Acquirer(s)
Liquorland (Qld) Pty Ltd
Target(s)
Hotel HQ and three detached bottleshops
Industry
Liquor retailing
Summary
Liquorland (Qld) Pty Ltd (Liquorland), part of Coles Group Ltd, proposes to acquire Hotel HQ (Kuraby Hotel) in Underwood Qld, as well as three detached bottle shops: Station Road Cellars in Woodbridge, Centrepoint Cellars in Woodbridge and Mt Warren Park Cellars in Mt Warren Park.
Outcome of assessment
Not opposed
Total review days *
21
Commenced public review
8th February 2008
Date completed
7th March 2008
Market definition
This proposed acquisition was assessed within the context of the following markets:
1. A local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5 kilometre radius surrounding Hotel HQ, which includes Centrepoint Cellars and Station Road Cellars (Market 1).
2. A local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5 kilometre radius surrounding Mt Warren Park Cellars (Market 2).
3. A local market within a 3-5 kilometre radius of Hotel HQ for the sale of liquor for on-premises consumption, gaming and live music (Market 3).
4. The Queensland market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 4).
Competition analysis
On 7 March 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 Markets 1 and 2, Liquorland will continue to face significant competition, from both Woolworths and independently owned outlets.
2. In relation to Market 3, there will continue to be a significant number of competing hotels venues near Hotel HQ which are likely to impose a competitive constraint on the target business.
3. In relation to Market 4, the ACCC considered that the proposed acquisition was unlikely to significantly affect the market share or buying power of Liquorland in the Queensland wholesale market.
Review timeline
Date
Event
8th February 2008
ACCC commenced review under the Merger Review Process Guidelines.
11th February 2008
Market inquiries commenced.
18th February 2008
Closing date for submissions from interested parties.
21st February 2008
Former proposed date for announcement of ACCC's findings of 21 February 2008 amended to allow for provision of further information by Coles.
7th March 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.
