ACCC clears Coles to buy IGA stores

Wesfarmers-owned Coles has received approval from the Australian Competition and Consumer Commission for its proposed acquisition of three Metcash-owned Progressive Supa IGA supermarkets, but is yet to make a decision on the fourth.

The ACCC said in a statement today that it would not oppose the purchase of supermarkets in Bunbury, Halls Head and Dianella, despite raising concerns in July that the sale may result in a substantial fall in competition in one or more of the local markets for supermarket retailing.

“The ACCC noted community concerns that the proposed acquisition would remove Progressive’s differentiated offering from the local areas,” ACCC commissioner Jill Walker said.

“However, in each of the local markets around these stores, there is at least one large competitive independent offer, in addition to Woolworths supermarkets.

“The ACCC also took into account information that suggested that Aldi would be likely to enter some of the relevant markets in the coming years as part of its expansion into Western Australia.”

Meanwhile, Coles’ proposed acquisition of the Bussleton Supa IGA remains in doubt due to a lack of information provided to the ACCC.

“Coles has not sought an ACCC view on the Bussleton acquisition at this time,” the competition watchdog said in a statement.

It said it would reconsider the acquisition when Coles provided more information.

In November last year Business News exclusively reported Coles and IGA swapped stores for the first time in Northbridge and Cockburn.