The ACCC will not oppose
"The ACCC did not have any concerns in relation to accommodation, gaming or meals, given the number of competitors in the area offering these services and Endeavour's limited presence in these local markets," ACCC Commissioner
"However, we did give close consideration to whether this proposed acquisition would lead to a substantial increase in local market concentration in liquor retailing."
In a finely-balanced assessment, the ACCC found that unique circumstances meant that this transaction is not likely to substantially lessen competition in this market even though the proposed acquisition would combine the two largest liquor stores in the local area.
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The ACCC considered that consumers would continue to have access to different promotions, pricing, ranges and service offerings in the local area, including at two nearby Thirsty Camel branded stores,
"The ACCC will continue to closely consider consolidation in local markets, particularly acquisitions that occur within a pattern of serial acquisitions,"
The ACCC also concluded that the proposed acquisition is unlikely to materially reduce the competitiveness of other stores that operate under the Thirsty Camel brand or weaken the overall strength of independent wholesalers.
Notes to editors:
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act.
In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Background
Endeavour is a major Australian alcoholic drinks retailer and hotel operator that operates a portfolio of brands including BWS,
- on-premises food and beverage areas, including function rooms, live entertainment, TAB and gaming facilities,
- an attached drive-through bottle shop which trades under the Thirsty Camel banner, and
- beachfront accommodation.
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(C) 2023 M2 COMMUNICATIONS, source