The Australian Competition and Consumer Commission (ACCC) has released a Statement of Issues outlining potential competition concerns with the proposed acquisition of four IGA stores in Western Australia by Coles Supermarkets.
The stores are located in Brusselton, Halls Head, Bunbury Forum and Dianella, and the ACCC’s preliminary view is that the proposed acquisition may result in a substantial lessening of competition in the areas.
“Market participants have expressed concern about losing the differentiated offering of their local progressive Supa IGA store.” ACCC commissioner Dr Jill Walker said.
“The ACCC considers that the differentiated offer of the Supa IGA stores reflects a competitive response to rival supermarkets and provides additional choice to consumers.”
“The ACCC is also concerned that the proposed acquisition would remove access to Supa IGA promotions for shoppers in these areas,” said Walker.
The final decision is set to be made on 14 August, 2014 and further submissions from the market in response to the Statement of Issues can be made until 24 July.