Woolworths Limited - proposed acquisition of liquor licences in the Sutherland Shire and Mortdale NSW

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Liquor licences in the Sutherland Shire and Mortdale NSW

Summary

Woolworths proposes to acquire six takeaway packaged liquor licences located in the Sutherland Shire (Burraneer, Cronulla, Kirrawee, Kurnell and Woolooware) and Mortdale, New South Wales. The licences are currently owned by Hoatle Pty Limited and trades under the banner group Liquor Stax.

Market definition

The ACCC considered the proposed acquisition in the context of:
- the local markets for the retail sale of packaged liquor for off-premises consumption within a 3-5km radius of each of the six target sites; and
- the New South Wales market for the wholesale supply of packaged liquor for subsequent sale in 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 markets of each of the six target sites, the presence of a number of other retail liquor outlets; and
- in the New South Wales 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
20/08/2010ACCC commenced review under the Merger Review Process Guidelines.
03/09/2010Closing date for submissions from interested parties.
16/09/2010ACCC announced it would not oppose the proposed acquisition.