Coles Group Property Developments Ltd and Coles Supermarkets Australia Pty Ltd

On 19 December 2025, the ACCC announced that it had accepted a court-enforceable undertaking given by Coles Supermarkets Australia Pty Ltd (CSA) and Coles Group Property Developments Ltd (CGPD) pursuant to s87B of the Competition and Consumer Act 2010 (Cth) (the Undertaking). The Undertaking was given in connection with the proposed acquisitions by Coles of leasehold interests for greenfield supermarket developments at the Deanside Central Town Centre (Deanside Central) and Mt Atkinson Major Town Centre (Mt Atkinson) in the Melton region in Victoria (the Proposed Acquisitions).

The ACCC was concerned that, in the absence of the Undertaking, each of the Proposed Acquisitions may have the effect, or be likely to have the effect, of substantially lessening competition in the retail supply of groceries and household products within a 3km and 5km radii of each of Deanside Central and Mt Atkinson.

CGPD currently owns a freehold interest in an undeveloped site at Kororoit, which is located approximately halfway between the proposed Deanside Central and Mt Atkinson stores (the Divestiture Site). CGPD and CSA entered into a sale agreement on 17 April 2025 and an agreement for lease on 17 April 2025 respectively with Neale Deanside Developments Pty Ltd (Oreana), pursuant to which CGPD would transfer its freehold interest in the Divestiture Site to Oreana and CSA would take a leaseback of a developed supermarket at the Divestiture Site.

The Undertaking requires CGPD to divest its freehold interest in the Divestiture Site (effectively accelerating settlement) and CSA to terminate the agreement for lease of the Divestiture Site.

Objective of the Undertaking

The Undertaking places obligations on CSA and CGPD:

• to ensure CGPD divests the Divestiture Site to Oreana by no later than 31 July 2026, to a purchaser the ACCC considers suitable to ensure a credible threat of competitive supermarket entry at the site
• to ensure CSA terminates the Agreement for Lease between Oreana and CSA
• in circumstances where CGPD does not divest the Divestiture Site to Oreana by 31 July 2026, that CGPD sells the Divestiture Site (including all necessary associated assets and rights to facilitate supermarket entry) to a purchaser the ACCC considers suitable to ensure a credible threat of competitive supermarket entry at the Divestiture Site
• to maintain the value and/or marketability of the Divestiture Site prior to divestiture
• to provide for the effective oversight of CSA and CGPD’s compliance with the Undertaking.