Australia: Woolworths acquires Macro Wholefoods stores

Woolworths is expanding its present in the organic food sector after the competition regulator gave a green light to the acquisition of Macro Wholefoods. While several retailers had raised objections to the merger, the Australian Competition and Consumer Commission said the deal was unlikely to substantially lessen competition in the organic food and grocery markets. Eight Macro Wholefoods stores in Sydney and Melbourne will be bought and be re-branded under Woolworths' new Thomas Dux gourmet food banner. One Macro store in Sydney will be sold separately to an independent organic retailer.

ACCC chairman Peter Kell said that organic products were only a small component of the range in Thomas Dux stores and made up less than 1 % of sales in Woolworths' full-range supermarkets. Macro focused almost entirely on organic products and was less competitive on price, but was emphasising range, quality, service, location and convenience instead. He continued that the ACCC's extensive inquiries found Macro's closest competitors to be smaller, independent retailers with a similar focus and that these competitors would remain in the market after the acquisition, continuing to provide consumers with choice. According to Mr Kell, if the acquisition did not proceed, Macro was unlikely to remain as a source of competition.

http://www.theaustralian.news.com.au