ACCC

Hi Folks

The Byron Shire Echo (www.echo.net.au 29 Jan p3) stated this week in an article headed “Woolworths on the agenda” that “Local company the Mallam Group has sold its business to Woolworths. The sale is depended on approval by the Australian Competition and Consumer Commission”.

On checking the ACCC website at http://www.accc.gov.au/content/index.phtml/itemId/808640/fromItemId/751046 we can see that the ACCC have already approved this “merger”, and that no submissions were received objecting to this.

I rang ACCC spoke to Caspar (no surname given) 1300 302 502 and asked him why we, as a community, were not informed that ACCC had asked for submissions re: the Mallams/Woolworths merger.

He told me that they had not sent out a media release regarding this merger (usually they do send them thru their news centre on their website) because they considered this merger to be a minor acquisition. The Project Officer in charge of this merger was Mark Rakers. As the closest Woolworths is 20 ks away, they consider Woolworths are not increasing their market share in the area (the criteria is 3 - 5 kilometres).

In their 'SLC TEST" (substantially lessening of competition) they decided, in their review, that it won't substantially lessen the competition. I asked what was their criteria for SLC and that appears to be the proximity of the nearest Woolworths. He said the ACC has no grounds to oppose the acquision because Woolworths are not increasing their market share in the area. This decision is based on market factors and they do not consult the community (as I wrote this down repeating his words, he added the word "actively consult the community").

I pointed out that on their website it stated that "no submissions were received" and I asked him how could they receive submissions from a concerned community if that community didn't even know about the process nor the dates 8 to 22 January wherein we would have to make the submissions. I said that that was not fair and could we please have an extension of the dates so that we could make submissions. He said that the decision is made and that's not possible. I said can we appeal the decision? He said we could write to: Mr Tim GrimwadeDirector of Mergers BranchGPO Box 3131Canberra ACT 2601. Caspar then took my name and number.

CheersDeborah
1 Feb 08

View ACC report:

http://www.accc.gov.au/content/index.phtml/itemId/808640/fromItemId/751046