ACCC opposes some ALH acquisitions

The competition watchdog has opposed the proposed acquisition of five takeaway liquor outlets in NSW by Australian Leisure and Hospitality Group (ALH) on the grounds that the acquisition would lessen competition.

ALH is 75 per cent-owned by supermarket operator Woolworths.

The Bruce Mathieson Group has 25 per cent of ALH.

The five takeaway outlets are among 31 hotels - some with bottleshops - and one takeaway packaged liquor licence in NSW that ALH is seeking to acquire from three vendors: the Laundy Hotel Group, the Waugh Hotel Group and the De Angelis Hotel Group.

Three of the five takeaway outlets are attached to hotels.

The takeaway outlets are the Chittaway Tavern in Chittaway Bay; the Albion Park Hotel in Albion Park; and the Ocean Beach Hotel and Umina Foodtown, both located at Umina Beach. The Ocean Beach Hotel also includes the Ocean Beach Cellars, which trades under the same liquor licence.

"The ACCC considered that the proposed acquisition of the five takeaway packaged liquor retailers by ALH would lead to a significant increase in concentration and loss of competitive tension between takeaway packaged liquor retailers in the Chittaway Bay, Umina Beach and Albion Park areas," ACCC commissioner Dr Jill Walker said in a statement on Thursday.

"The ACCC also concluded that the acquisitions would result in a loss of choice for customers in the relevant local markets, as the differentiated offering of the targets, including their promotional offers, would be eliminated."

The ACCC said the proposed acquisition of the remaining 28 hotels was unlikely to substantially lessen competition.

ALH already owns and operates 294 hotels and about 12,000 gaming machines nationally. ALH currently operates 27 hotels and around 700 gaming machines in NSW.

Woolworths is currently the largest liquor retailer in Australia, with more than 1,100 retail stores and around 37 per cent of national liquor sales.

Woolworths operates the takeaway liquor stores Dan Murphy's, BWS and Woolworths Liquor.

Source: Herald Sun, 28 June 2012