ACCC opposes Coles’ acquisition of Kalgoorlie supermarket and liquor site
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The news: The competition regulator has blocked Coles’ proposed acquisition of a supermarket and liquor site in Kalgoorlie, Western Australia.
The context: Coles notified the ACCC of the proposal last November. After an initial Phase 1 review, the regulator determined in January that the acquisition required an in-depth Phase 2 assessment.
The ACCC concluded Coles’ proposed acquisition would be likely to “substantially” lessen competition in the retail supply of groceries by supermarkets in Kalgoorlie.
It noted the move may lead to the exit of an independent competitor from Kalgoorlie, and result in a reduction in competition for the major supermarket chains.
What they said: “We found that while a new Coles supermarket will offer benefits to some consumers, there is a real prospect that the acquisition would lead to the exit of an effective independent competitor, and its assets leaving the market,” said ACCC deputy chair Mick Keogh.
“New entry would not be timely enough and sufficient to offset the loss of competition likely to result from the acquisition.”
The source: ACCC
