Woolworths has been given the green light by the ACCC to expand their organic and gourmet food offerings.
The supermarket chain’s proposed acquisition of Macro Wholefoods was met with fierce opposition from several retailers including Metcash, but the competition consumer watchdog ruled the acquisition will not affect competition in the sector.
Woolworths will acquire eight Macro Wholefoods stores in Sydney and Melbourne for a purchase price believed to be between $20 million and $30 million. The sites will then be rebranded under Woolworths’ new Thomas Dux gourmet food banner, a brand that currently has just two stores.
Acting ACCC chairman Peter Kell said there was little competition between Woolworths and Macro due to key differences in their retail offering.
“Organic products are only a small component of the range in Thomas Dux stores and make up less than one percent of sales in Woolworths’ full-range supermarkets – their closest competitors are other supermarkets.”
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