Woolworths Limited - proposed acquisition of a liquor licence in Baldivis WA

Summary

Woolworths Limited proposed to acquire a takeaway packaged liquor retail outlet, licence and associated assets in Baldivis, WA, currently trading as 'Con's Liquor'.

Market definition

This proposed acquisition was assessed within the context of the following markets:

1. the local market for the retail sale of packaged liquor for off-premises consumption. The geographic dimension is a 3-5km radius surrounding the target retail liquor business (Market 1); and

2. the Western Australian market for the wholesale supply of packaged liquor for subsequent sale in the retail market for off-premises consumption (Market 2).

Competition analysis

On 30 September 2008, the ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

1) in relation to Market 1, Woolworths owned no liquor outlets (either takeaway packaged liquor outlets or hotels) within the market. Accordingly, the proposed acquisition represented a bare transfer of market share, and the liquor store to be acquired will continue to face a number of local competitors; and

2) in relation to Market 2, after conducting market inquiries, the ACCC considered that the proposed acquisition would not significantly diminish the market share or buying power of any independent wholesaler (or significantly increase the market share or buying power of Woolworths) in the relevant market.