Woolworths Limited - proposed acquisition of Liquor Licence in Dromana, Victoria
Type of assessment
Informal Review
Reference
35174
Acquirer(s)
Woolworths Limited
Target(s)
Liquor licence in Dromana, Victoria
Industry
Liquor Licence
Summary
Woolworths Limited proposed to acquire a takeaway packaged liquor licence and associated assets (trading as "Cellarbrations") in Dromana, Victoria.
Outcome of assessment
Not opposed
Total review days *
9
Commenced public review
7th November 2008
Date completed
19th November 2008
Market definition
The proposed acquisition was assessed within the context of the following markets:
1. the local market for the retail supply of packaged liquor for off-premises consumption. The geographic dimension is a 3-5km radius surrounding the target retail liquor business (Market 1); and
2. the Victorian market for the acquisition of wholesale packaged liquor for subsequent sale in retail markets for off-premises consumption (Market 2).
Competition analysis
On 19 November 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 did not own or operate any retail liquor outlets in 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 would not significantly increase the market share or buying power of Woolworths in the relevant market (nor significantly diminish the market share or buying power of any independent wholesaler).
Review timeline
Date
Event
7th November 2008
ACCC commenced review under the Mergers Review Process Guidelines.
14th November 2008
Closing date for submissions from relevant parties.
19th November 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.
