Woolworths Limited - proposed acquisition of Thrift Park Cellars from Garrannak Pty Ltd

Acquirer(s)

  • Woolworths Limited

Target(s)

  • Thrift Park Cellars from Garrannak Pty Ltd

Summary

Woolworths proposed to acquire an off-licence liquor retailer (including the liquor licence) trading as "Thrift Park Cellars" at shops 2, 3 and 4 Thrift Park Shopping Centre, Nepean Highway, Mentone, Victoria.

Market definition

This proposed acquisition was assessed within the context of the following markets:

1. the market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension of this market is a 3-5km radius surrounding the target business; and

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

Competition analysis

On 28 August 2007, 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:

- in relation to the first market, the ACCC concluded that post-acquisition, Woolworths Limited will be constrained by competition from Coles and a substantial number of independent bottle shops in the local area; and

- In relation to the second market, the ACCC considered that Woolworths' relatively small increase in market share as a result of the acquisition was unlikely to significantly increase Woolworths' buying power or to substantially weaken any competing wholesaler by diminishing its buying power.

Timeline

DateEvent
14/08/2007ACCC commenced review under the Merger Review Process Guidelines.
21/08/2007Closing date for submissions from interested parties.
28/08/2007ACCC announced it would not oppose the proposed acquisition.