A Charter promoting fair competition between potential buyers of independent supermarkets commences today, Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, has announced.
Under the Charter, Metcash, Woolworths and Coles will not be able to limit the ability of independent supermarket retailers to seek alternative purchasers for their stores. They will also have to provide independent supermarket owners with written notice of this fact when making an offer to purchase a store.
An exception applies where a party to the Charter has provided financial or other assistance to an independent supermarket operator. However, any accompanying restriction on the right of the operator to sell must be reasonable when assessed against the nature of the assistance provided.
"The Charter is a significant step forward and a win for all concerned", Mr Samuel said. "It will benefit consumers by promoting competition in the supermarket sector, particularly by helping to address concerns about creeping acquisitions. It will ensure that independent supermarket owners are able to achieve the highest possible price for their stores via an open bidding process. And it will ensure that each of the major supermarket players has a fair opportunity to acquire independent supermarkets as they come up for sale".
The ACCC facilitated the development of the Charter for the Competitive Sale of Independent Supermarkets and the commitment to the Charter by Metcash, Woolworths and Coles Myer.
"The Charter constitutes a set of good-faith commitments made by each party. The ACCC is confident that the goodwill that Metcash, Woolworths and Coles Myer have shown in developing and committing to the Charter will see compliance.
"The Charter does not bind independent supermarkets owners in any way and it does not require them to seek bids from all possible buyers, but it does ensure that they are free to do so if they wish", Mr Samuel said.
Other supermarket operators are also able to commit to the Charter. The Charter will not alter the way the ACCC examines proposed acquisitions of supermarkets under section 50 of the Trade Practices Act 1974 to ensure that they do not substantially lessen competition.