Will Coles’ new venture will reduce competition
The ACCC has reported that it will be undertaking a public review of Coles’ proposed acquisition of the Supabarn supermarkets. The ACCC considers that Supabarn is a “significant independent chain”.
One challenge facing businesses in determining whether that conduct will pass approval by the ACCC is identifying the relevant market. In this instance ACCC will review each of the individual local markets in which the Supabarn stores operate.
ACCC chairman Rod Sims confirmed that “the main indicator of a substantial lessening of competition is whether the acquisition would enable firms in the market to raise prices or reduce product quality (including service and choice) or innovation following the acquisition. Section 50 does not allow the ACCC to consider factors other than those related to competition. In particular, the ACCC cannot oppose a proposed acquisition because of its potential to impact on the character of a local area”.
If you are unsure about whether your proposed transaction would require ACCC approval, do not hesitate to contact Gladwin Legal for a chat about your proposed venture contact us at: or 1300 033 934.
Source: ACCC Media Release 19 June 2015.