The ACCC has decided that Coles Group Limited's acquisition of a lease for a supermarket and liquor store in Kalgoorlie, WA requires an in-depth assessment.
As the ACCC has not approved the acquisition in its Phase 1 assessment, it will require a Phase 2 review for the acquisition to proceed.
The acquisition of the lease relates to a development proposed for a vacant site in Kalgoorlie, WA where Coles is proposing to operate a large format supermarket and liquor store. Coles already operates one existing supermarket and three Liquorland liquor stores in Kalgoorlie.
"We consider the acquisition could substantially lessen competition for the retail supply of groceries in Kalgoorlie," ACCC Deputy Chair Mick Keogh said.
The acquisition is likely to provide Coles with a significant market share for the retail supply of groceries in a local market where competitive constraint from rival supermarkets may be limited and timely new entry may be unlikely.
The ACCC is also considering whether the acquisition may create, strengthen or entrench Coles' substantial market power in the local market.
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
"We believe this acquisition needs an in-depth assessment to understand the likely impact it will have on competition in Kalgoorlie," Mr Keogh said.
"We look forward to speaking to more industry participants and interested parties in the coming weeks."
