Woolworths Limited - proposed acquisition of Dormant hoteliers licence in Dubbo NSW

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Dormant hoteliers licence in Dubbo NSW

Summary

Woolworths Limited proposes to acquire a dormant hoteliers licence located at 69 Macquarie Street, Dubbo, New South Wales. Dubbo (approximate population of 39,000) is located approximately 415 km north-west of the Sydney CBD.

Market definition

The 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, at its narrowest, a 3-5km radius surrounding the target retail liquor business. (Market 1); and

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

Competition analysis

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:

1. in relation to Market 1, the existence of other competitors in the relevant local market which would pose a competition constraint on Woolworths post acquisition; and

2. in relation to Market 2, the acquisition of one retail licence is unlikely to significantly increase Woolworths' market share (or buying power) or substantially diminish the buying power of any competitor.

Timeline

DateEvent
25/03/2008ACCC commenced review under the Merger Review Process Guidelines.
09/04/2008Closing date for submissions from interested parties.
16/04/2008ACCC announced it would not oppose the proposed acquisition.