Acquirer(s)

  • Coles Group Ltd

Target(s)

  • Talbot Hotel Group

Summary

The Coles Group proposed to acquire six hotels in Queensland from the Talbot Hotel Group; the Bonny View Tavern, Everton Park Hotel, Cleveland Sands Hotel, Coomera Lodge Hotel, Mi-Hi Creek Hotel, and Bargara Beach Hotel/Motel. Coles also proposed to acquire six associated liquor barns and 11 detached bottle shops.

Market definition

1. relevant local markets (within Queensland) in liquor retailing for off-premises consumption;
2. the Queensland market for wholesale liquor; and
3. relevant local markets for the sale of liquor for on-premises consumption, gaming and live music.

Competition analysis

Each of the local markets in which Coles will acquire new hotels remain relatively unconcentrated. In each local market, Woolworths and a number of independent hotels and associated detached bottle shops remain to provide competition to Coles.

In relation to the wholesale market, the acquisition resulted in a relatively small increase in Coles' share on the buying side of the wholesale liquor market and a correspondingly small decrease in the market share for independent liquor buying groups. Therefore, the ACCC considered it unlikely that the acquisition would lead to a substantial lessening of competition in any of the relevant markets.

Timeline

Date Event

ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.

Closing date for submissions from interested parties.

ACCC announced that it would not oppose the merger.