Woolworths Limited - proposed acquisition of Rivervale Western Cellars

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Rivervale Western Cellars

Summary

Woolworths proposes to acquire a retail liquor store licence which currently trades as "Rivervale Western Cellars" located at 109-111 Great Eastern Highway, Rivervale, Western Australia.

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 3km radius surrounding the target retail liquor business; and

2. the Western Australian market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption.

Competition analysis

On 26 May 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

1. in relation to Market 1, Woolworths owned no liquor outlets (either takeaway packaged liquor outlets or hotels) within the market. Accordingly, the proposed acquisition represented a bare transfer of market share; and

2. in relation to Market 2, the ACCC considered that the proposed acquisition of one liquor licence was unlikely to significantly change the market dynamics between Woolworths and other liquor wholesalers.

Timeline

DateEvent
06/05/2008ACCC commenced review under the Merger Review Process Guidelines.
19/05/2008Closing date for submissions from interested parties.
26/05/2008ACCC announced it would not oppose the proposed acquisition.