ACCC rules on Woolies pub purchase June 29, 2012 09:00 AM
Australia’s competition regulator has ruled on Woolworths Limited’s (ASX:WOW) bid to buy a portfolio of New South Wales pubs from the Laundy Hotel Group. The Australian Competition and Consumer Commission (ACCC) will allow the supermarket giant to acquire 28 pubs but has doused hopes on the company’s plans to purchase five liquor retailers. The ACCC believes Woolies planned purchase of 28 pubs is unlikely to substantially affect competition. However the ACCC says the proposed acquisition of the five takeaway packaged liquor retailers would likely substantially lessen competition in the relevant local markets. The deal between Woolworths and the Laundy Hotel Group is reportedly worth about $500 million. In the first half of the 2012 financial year Woolworths reported a net profit $975 million.