Coles Supermarkets Australia Pty Ltd - proposed acquisition of Progressive Supa IGA supermarkets in Whitford City and Cockburn Gateway WA

Summary

Coles Supermarkets proposed to acquire two Progressive Supa IGA supermarkets in Whitford City and Cockburn Gateway, Western Australia.

Market definition

The ACCC considered the effects of the acquisition in the context of local retail supermarket competition in each of Whitford City and Cockburn Gateway, taking into account conditions unique to each area. The ACCC also took into account any likely impact in other relevant markets, including the broader retail market and wholesale procurement and supply markets.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in local retail markets.

In relation to the acquisition of Progressive Supa IGA Whitford, the ACCC considered that the presence of other IGA supermarkets in the Whitford region would provide a service offering similar to that of the target post-acquisition.

In relation to the acquisition of Progressive Supa IGA Cockburn, the ACCC considered that there was limited overlap between the operations of the target Supa IGA store and existing Coles supermarkets.

In relation to the broader retail market and wholesale markets, the ACCC considered that the acquisition of two Supa IGA stores would not materially impact the volumes of supermarket products acquired and supplied by Coles or other wholesalers and therefore the proposed acquisition was unlikely to raise competition concerns in these markets.