Woolworths Ltd - completed acquisition of a supermarket lease at Southlands Shopping Centre in South Penrith

Acquirer(s)

  • Woolworths Ltd

Target(s)

  • a supermarket lease at Southlands Shopping Centre in South Penrith

Summary

Woolworths has acquired a supermarket lease at the Southlands Shopping Centre in South Penrith.

Market definition

The ACCC considered the acquisition in the context of the following relevant markets:
- the local market for supermarket retailing in South Penrith and the surrounding area. For the purposes of this assessment the market included those supermarkets within 5Km (by road) from the Southlands Shopping Centre, although the analysis would be unchanged if a narrower 3Km radius were adopted
- the state market for the procurement of products sold in supermarkets by supermarket wholesalers
- the state market for the wholesaling of products sold in supermarkets. (The ACCC noted that the geographic market for wholesaling may be broader, but in this case the competition analysis would be unchanged).

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. In relation to the local supermarket retail market, the ACCC considered that Woolworths was likely to be constrained by a number of existing competitors located nearby. In relation to the wholesale and procurement markets, the ACCC considered that the acquisition was unlikely to significantly alter the buying power of Woolworths or its competitors, and was unlikely to result in a substantial lessening of competition.

Timeline

DateEvent
27/11/2008ACCC commenced review under the Merger Review Process Guidelines.
08/12/2008Closing date for submissions from interested parties.
17/12/2008ACCC announced it would not oppose the proposed acquisition.