Green is gold
Coming off the back of the ACCC’s heavy scrutiny of the supermarkets industry (blogged about here) and recent opposition to Woolworths’ proposed acquisition of undeveloped land in June this year (blogged about here), the ACCC announced last week that it would not oppose Woolworths’ proposed acquisition of three Supa IGAs in Queensland.
The proposal involves Woolworths acquiring three Supa IGA stores; one located at Banksia Beach in Bribie Island and two located in Townsville in Rasmussen and Riverside Gardens. In contrast to the previous opposition, the ACCC found that there was enough competition in the local markets, with ACCC Commissioner Dr Jill Walker stating that, “[d]espite Woolworths’ increase in market share, it would remain constrained by other supermarkets in the local markets with different offerings”.
This decision makes it clear that the ACCC will assess each acquisition proposal on its own and that competition in the local market is a big factor in the ACCC’s decision making process.
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