Woolworths Limited - acquisition of Langton's Fine Wine Auctions

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Langton's Fine Wine Auctions

Summary

Woolworths has completed an acquisition of Langton's Fine Wine Auctions.

Market definition

Without reaching a concluded view, the ACCC considered the transaction in the context of the national market for online retail wine sales and auctions.

Competition analysis

The ACCC concluded that Woolworths' acquisition of Langton's Fine Wine Auctions is unlikely to result in a substantial lessening of competition.

Prior to the acquisition, Woolworths Liquor, BWS and Dan Murphy's did not have a presence in the online wine segment and Langton's had no retail store presence, therefore the acquisition does not lead to a competitor exiting either market. In addition, the presence of multiple competitors in the online wine segment enables Langton's customers to readily access substitute products and services post-acquisition. The ACCC further considered that barriers to entry in the online wine industry are low, and are unlikely to significantly impede the entry of new competitors.

Timeline

DateEvent
02/02/2008The acquisition was completed.
11/02/2009ACCC commenced review under the Merger Review Process Guidelines, following advice that the acquisition had been completed.
27/02/2009Closing date for submissions from interested parties.
05/03/2009ACCC announced it would not oppose the proposed acquisition.