Woolworths Limited - proposed acquisition of Dormant hoteliers licence in Dubbo NSW
Type of assessment
Informal Review
Reference
31578
Acquirer(s)
Woolworths Limited
Target(s)
Dormant hoteliers licence in Dubbo NSW
Industry
Liquor licence
Summary
Woolworths Limited proposes to acquire a dormant hoteliers licence located at 69 Macquarie Street, Dubbo, New South Wales. Dubbo (approximate population of 39,000) is located approximately 415 km north-west of the Sydney CBD.
Outcome of assessment
Not opposed
Total review days *
17
Commenced public review
25th March 2008
Date completed
16th April 2008
Market definition
The 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, at its narrowest, 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
The ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets.
Factors informing this conclusion included:
1. in relation to Market 1, the existence of other competitors in the relevant local market which would pose a competition constraint on Woolworths post acquisition; and
2. in relation to Market 2, the acquisition of one retail licence is unlikely to significantly increase Woolworths' market share (or buying power) or substantially diminish the buying power of any competitor.
Review timeline
Date
Event
25th March 2008
ACCC commenced review under the Merger Review Process Guidelines.
9th April 2008
Closing date for submissions from interested parties.
16th April 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.
