Woolworths Ltd - completed acquisition of a supermarket site at Newport, NSW

Acquirer(s)

  • Woolworths Ltd

Target(s)

  • Supermarket site at Newport in New South Wales

Summary

Woolworths had recently acquired two pieces of land in Newport, NSW from the Pittwater Council and in 2007 acquired an adjoining piece of land from a third party. Woolworths intended to develop a new supermarket on the combined sites.

Market definition

The completed acquisition was considered in the context of the following markets:
- the local retail supermarket market,
- the NSW wholesale market for products sold in supermarkets, and
- the NSW market for the procurement of products sold in supermarkets by supermarket wholesalers from growers and suppliers of products sold in supermarkets.

Competition analysis

The ACCC considered that if the completed acquisition by Woolworths did not proceed, it was unlikely that the site would have been developed to include a supermarket operated by an alternative supermarket operator. When comparing the likely state of competition 'with' the completed acquisition to the likely state of competition 'without' the completed acquisition, the ACCC considered that the completed acquisition was unlikely to result in a substantial lessening of competition in any relevant market.

Timeline

DateEvent
08/12/2009ACCC commenced review under the Merger Review Process Guidelines.
15/12/2009Closing date for submissions from interested parties.
24/12/2009ACCC announced it would not oppose the acquisition.