Woolworths Limited - proposed acquisition of Landsdale Liquor Pty Ltd

Summary

Woolworths intended to enter into an agreement to acquire a liquor store, liquor licence and associated assets located at the Landsdale Forum Shopping Centre, WA.

Market definition

This proposed acquisition was assessed within the context of the following markets:

1. the market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension of this market is a 3-5km radius surrounding the target, Landsdale Liquor.
2. the WA market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption.

Competition analysis

On 19 June 2007, 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:

- In relation to the first market, the ACCC concluded that post-acquisition, Woolworths Limited, which owns no stores within 3km of the target and four stores within 5km, will be constrained by competition from Coles and a large number of independent hotels and associated detached bottle shops; and
- In relation to the second market, the ACCC considered that the acquisition of one retail store is unlikely to significantly increase Woolworths' market share (or buying power) or to substantially diminish the buying power of any competitor.