By Aimee Chanthadavong
The Australian Competition and Consumer Commission (ACCC) has approved Woolworth’s proposed acquisition of The Cellarmasters Group.
After consulting with competitors, suppliers and customers, the ACCC concluded that the proposed acquisition would be unlikely to substantially lessen competition in wine retailing, production and associated services.
“The ACCC’s review found that Woolworths and Cellarmasters were not particularly close retail competitors regardless of how the relevant market was defined, and there would remain several significant competitors in the retail sale of wine following the proposed acquisition,” the commission said in a statement.
A spokespersonfor Woolworths told TheShout that the company was pleased with the outcome.
“We welcome the ACCC’s announcement. The ACCC conducted a thorough review and we are pleased and agree with their conclusions,” the spokesperson said.
The ACCC noted that there was scope for new entry as Wesfarmers, Metcash-supplied banner groups, independent bricks and mortar retailers and a range of online retailers continue to impose competitive pressure on Woolworths following the proposed acquisition.
“The processes to conclude the transaction will now continue and we expect to be able to make a fuller announcement to the market in due course,” the Woolworths spokesperson said.
The retailer giant acquired Cellarmasters from Archer Capital for $340 million in late February.