Woolworths Ltd - proposed acquisition of Cresthaven Cellars
Type of assessment
Informal Review
Reference
31289
Acquirer(s)
Woolworths Ltd
Target(s)
Cresthaven Cellars
Industry
Liquor retailing
Summary
Woolworths is proposing to acquire the fixtures and retail off-licence for a take-away packaged liquor store in Bateau Bay, NSW, known as Cresthaven Cellars.
Outcome of assessment
Not opposed
Total review days *
10
Commenced public review
25th February 2008
Date completed
7th March 2008
Market definition
The proposed acquisition was considered in the context of the following markets:
- the local (Bateau Bay) market for the retail sale of liquor for off-premises consumption; and
- the NSW market for the wholesale supply of packaged liquor for subsequent sale in the retail market for liquor for off-premises consumption.
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:
- In relation to the local (Bateau Bay) market, Woolworths had no existing presence in the local area (within a 3-5 kilometer radius) and would face significant competition from both Liquorland and other independently owned retail outlets; and
- In relation to the NSW wholesale market, the ACCC considered that the proposed acquisition was unlikely to significantly change the market dynamics between Woolworths and other liquor wholesalers.
Review timeline
Date
Event
25th February 2008
ACCC commenced review under the Merger Review Process Guidelines.
5th March 2008
Closing date for submissions from interested parties.
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.
