Woolworths Limited - proposed acquisition of Roleystone Trades
Type of assessment
Informal Review
Reference
31824
Acquirer(s)
Woolworths Limited
Target(s)
Roleystone Trades
Industry
Retail Liquor Store Licence
Summary
Woolworths proposes to acquire a retail liquor store licence which currently trades as "Cellarbrations at Roleystone" located at Roleystone Shopping Centre, 21 Jarrah Road, Roleystone, WA.
Outcome of assessment
Not opposed
Total review days *
14
Commenced public review
23rd April 2008
Date completed
13th May 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; and
2. the Western Australian market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption.
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. Woolworths would be a new entrant in the local retail market and therefore Woolworths is not likely to be able to exert any influence on prices as a result of the acquisition; and
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
23rd April 2008
ACCC commenced review under the Merger Review Process Guidelines.
5th May 2008
Closing date for submissions from interested parties.
13th May 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.
