The ACCC has decided that Coles’ acquisition of a lease for a supermarket and liquor store in Kalgoorlie, Western Australia requires an in-depth assessment.

As the ACCC hasn’t approved the acquisition in its Phase 1 assessment, it will require a Phase 2 review for the acquisition to proceed.

The acquisition of the lease relates to a development proposed for a vacant site in Kalgoorlie, where Coles is proposing to operate a large format supermarket and liquor store. The retailer already operates one existing supermarket and three Liquorland liquor stores in Kalgoorlie.

“We consider the acquisition could substantially lessen competition for the retail supply of groceries in Kalgoorlie,” says ACCC Deputy Chair Mick Keogh.

The ACCC will continue to consider the acquisition in Phase 2.

“We believe this acquisition needs an in-depth assessment to understand the likely impact it will have on competition in Kalgoorlie,” says Mr Keogh.

“We look forward to speaking to more industry participants and interested parties in the coming weeks.”

The ACCC invites submissions in response to its Phase 2 Notice by 13 February. Parties can contact the ACCC via [email protected].

It’s the first acquisition that the ACCC has considered since additional targeted notification requirements were determined by the Assistant Minister for Competition that apply to acquisitions by Coles and Woolworths.