The Australian Competition and Consumer Commission today published a Statement of Issues identifying its preliminary competition concerns in respect of eight Action supermarkets which are the subject of a proposed acquisition by Woolworths.
After conducting an extensive investigation, the ACCC has formed the preliminary view that the proposed acquisition is likely to substantially lessen competition in retail markets in the local areas of Mudgeeraba and Mermaid Waters in Queensland and Willetton, Spearwood, Noranda, Maddington, Woodvale and Kalgoorlie in Western Australia.
"The ACCC invites further information from the market in respect of its preliminary views", ACCC Chairman, Mr Graeme Samuel, said today. "The ACCC also invites Woolworths to use the opportunity of this Statement of Issues to consider a court enforceable undertaking to resolve the ACCC's concerns.
"The Statement of Issues has been published in accordance with the ACCC's guidelines for informal merger reviews and outlines the facts and competition concerns which underpin these preliminary views.
"The ACCC anticipated that the acquisition would also raise issues in the markets for the procurement of perishable products which are not easily exported from or imported to Western Australia. Initially, market participants indicated there were competition concerns which gave rise to the ACCC forming an initial view that the acquisition had the potential to substantially lessen competition in some of these markets. Following further market inquiries, evidence was not forthcoming from market participants to substantiate the ACCC's initial views. The ACCC considers there is insufficient evidence to support the proposition that there is likely to be a substantial lessening of competition in any of these markets".
The Statement of Issues invites market participants to provide further information to the ACCC by 15 September 2005 as to whether or not there are competition concerns in the markets identified by the ACCC. Depending on any further information provided to the Commission, the ACCC intends to make a final decision regarding the acquisition by mid October. Those interested in making a submission will find further information in the Public Register on the ACCC website.