By James Atkinson
Australia's competition watchdog will not intervene in the proposed acquisition by Australian Leisure and Hospitality Group (ALH) and the Laundy Hotel Group of the Caringbah Hotel in NSW, a deal reportedly worth close to $45 million.
"The ACCC's view is that this acquisition is unlikely to lead to a substantial lessening of competition in any of the relevant markets," ACCC chairman Rod Sims said.
The ACCC considered that the Caringbah store was a large format, 'destination' liquor store. The nearest liquor store of that kind owned by ALH's 75 per cent owner, Woolworths, is a Dan Murphy's 12km away at Hurstville.
"While there was evidence of some competition between these stores, the removal of that competition was unlikely to have the effect of substantially lessening competition," Sims said.
"In the area surrounding the Caringbah Hotel, following the proposed acquisition, ALH/Woolworths would be likely to be competitively constrained by a number of remaining competitors in the market," Sims said.
Ray White Hotels director Andrew Jolliffe, who brokered the deal, told TheShout the agency was "grateful to have been able to facilitate the largest single pub transaction for several years, on a national basis".
"I think if people are looking for indicators of market buoyancy and market resurgence, then there is no better indicator that the market is in substantive recovery," he said.
"I think there's been something like $1 billion worth of end-value transactions consummated over the last 12 months in the industry, which further highlights the trend."
Can’t believe the ACCC allowed this. Competition in Shire bottle shops has been greatly reduced by the woolies takeovers.