Woolworths Limited - proposed acquisition of Rivervale Western Cellars
Type of assessment
Informal Review
Reference
31956
Acquirer(s)
Woolworths Limited
Target(s)
Rivervale Western Cellars
Industry
Retail Liquor Store Licence
Summary
Woolworths proposes to acquire a retail liquor store licence which currently trades as "Rivervale Western Cellars" located at 109-111 Great Eastern Highway, Rivervale, Western Australia.
Outcome of assessment
Not opposed
Total review days *
15
Commenced public review
6th May 2008
Date completed
26th 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 3km 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
On 26 May 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 Market 1, Woolworths owned no liquor outlets (either takeaway packaged liquor outlets or hotels) within the market. Accordingly, the proposed acquisition represented a bare transfer of market share; and
2. in relation to Market 2, the ACCC considered that the proposed acquisition of one liquor licence was unlikely to significantly change the market dynamics between Woolworths and other liquor wholesalers.
Review timeline
Date
Event
6th May 2008
ACCC commenced review under the Merger Review Process Guidelines.
19th May 2008
Closing date for submissions from interested parties.
26th 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.
