logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

ACCC will review Coles’ proposed acquisition of Supabarn supermarkets

Justin Grey
22 June 2015 1 minute readShare


The Australian Competition and Consumer Commission will shortly commence a public review of Coles’ proposed acquisition of Supabarn supermarkets.

 

accc

Advertisement
Advertisement

It's been said that The Australian Competition and Consumer Commission will shortly commence a public review of Coles’ proposed acquisition of Supabarn supermarkets.

ACCC Chairman Rod Sims said: "Given Supabarn’s position as a significant independent supermarket chain, an important focus of the ACCC’s review will be whether its removal as a competitor would substantially lessen competition between supermarket chains. The review will also examine each of the individual local markets in which the Supabarn stores operate, and any effect on grocery wholesaling and supply markets".

 

“The legal test which the ACCC will apply in considering the proposed acquisition is in Section 50 of the Competition and Consumer Act (2010). Section 50 prohibits acquisitions that substantially lessen competition in a market, or are likely to do so.”

“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,” Mr Sims said.

As part of its review, the ACCC will invite submissions from consumers, suppliers, supermarket operators and other interested parties.

The ACCC will commence its review next week and will be accepting public submissions until mid-July.

SPONSORED CONTENT

 

You can find further information will be available at: Coles - proposed acquisition of 9 Supabarn supermarkets

 

Like My Business on Facebook now to get involved in the SME community discussion. 
Follow @mybusinessau on Twitter for breaking stories throughout the day. 

Subscribe to the print version of My Business now.

ACCC will review Coles’ proposed acquisition of Supabarn supermarkets
mybusiness logo
Justin Grey

Leave a Comment

Latest poll

Which of the following stimulus measures has had the greatest impact on your business?