Woolworths Limited - proposed acquisition of Liquor Barons Busselton

Summary

Woolworths Limited proposed to acquire an off-licence and associated assets in Abbey via Busselton, WA, currently trading as 'Liquor Barons Busselton'.

Market definition

This 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 a 3-5km radius surrounding the target retail liquor business (Market 1); and

2. the Western Australian market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 2).

Competition analysis

On 28 February 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 affect the market share or buying power of Woolworths in the WA wholesale market.