Woolworths Limited - proposed acquisition of liquor licence in Orange NSW

Summary

Woolworths proposed to acquire a takeaway packaged liquor licence in Orange NSW from Franklins Pty Limited. Until mid-March 2009 the licence traded as 'Liquor Legends Orange'.

Market definition

The ACCC considered that the relevant markets for the purpose of the proposed acquisition were likely to be:
- the local market for the retail sale of liquor for off-premises consumption within a 3-5km radius of the location of the target site in Orange, NSW; and
- a NSW market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In forming this view, the ACCC had regard to the following factors:
- in the local retail market, Woolworths did not operate a liquor licence for off-premises consumption prior to the proposed acquistion, and there were a number of other retail liquor outlets that would continue to compete; and
- in the NSW wholesale market, the proposed acquisition was unlikely to significantly increase the buying power of Woolworths, nor diminish the buying power of competing wholesale purchasers.