Woolworths Limited - proposed acquisition of Liquor licence located in Pascoe Vale Victoria

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Liquor licence located in Pascoe Vale Victoria

Summary

Woolworths proposed to acquire a takeaway packaged liquor licence located at Pascoe Vale, VIC. The Licence is located at 90 Cumberland Road, Pascoe Vale and trades as Nicholson's Cellars.

Market definition

The ACCC considered the proposed acquisition in the context of the following markets:
- a local retail market for the supply of liquor for off-premises consumption, with a 3-5 km geographic radius surrounding the target; and
- a state-based wholesale market for the supply and procurement of packaged liquor products 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 retail market, Woolworths would continue to be constrained by a number of other retail liquor outlets; and
- in the wholesale market, the proposed acquisition was unlikely to significantly increase the buying power of Woolworths, nor diminish the buying power of competing wholesale purchasers.

Timeline

DateEvent
27/07/2009ACCC commenced review under the Merger Review Process Guidelines.
10/08/2009Closing date for submissions from interested parties.
13/08/2009ACCC announced it would not oppose the proposed acquisition.