The ACCC has raised concerns over Woolworths’ proposed $87.6 million takeover of Danks Holdings, citing a reduction in competition.
The ACCC said it was concerned the deal could result in a reduction in competition between retailers in some markets, particularly between Woolworths’ big-box stores and retailers supplied by a Woolworths-owned Danks.
University of New South Wales competition law expert Associate Professor Frank Zumbo, said the ACCC has raised very serious competition concerns in its preliminary report released last Friday about the acquisition.
“It suggests they’ve got enough to stop the takeover under anti-merger laws,” he said.
‘The ACCC needs to take the next step and stop the takeover. By allowing Woolworths to takeover Danks it would remove the significant competition that Danks provides through its 1500 independents (retailers) to Woolworths and Bunnings in the big box markets.”
The regulator has called for public comment addressing Woolworths’ competition incentives and the likelihood of reduced competition from fewer wholesalers.
The ACCC will make a final decision on the takeover on November 11.