ACCC gives Woolies OK to buy Supa IGA in Hawker

John Durie
July 04, 2013
The Australian

THE Australian Competition and Consumer Commission has waved through Woolworths’ purchase of a Supa IGA store in the Canberra suburb of Hawker, despite casting doubt on the move in its preliminary soundings.

In its statement on today’s decision, ACCC chairman Rod Sims said: “After an extensive investigation and rigorous consultation with interested parties, the ACCC concluded that the proposed acquisition would not result in a substantial lessening of competition in any market,” ACCC Chairman Rod Sims said.

The competition watchdog said the local market in the suburb of Hawker included “several supermarket offerings”.
“The Hawker Supa IGA’s closest competitor was a Coles supermarket at the nearby Jamison Centre, which also has an ALDI,” it said. “The local Woolworths supermarkets are more distant competitors.”

Today’s decision is likely to come as a surprise because in recent months the ACCC has blocked creeping acquisitions by Woolworths, including a proposed development at Glenmore Ridge, outside Sydney.

When the Glenmore decision was announced, after almost a year of deliberation, Woolies said that it was disappointed and may appeal because it feared a precedent that would block its hope of building up to 25 new supermarkets a year.