Source: Australian Ministers for Regional Development
The ACCC has decided that Coles Group Limited’s acquisition of a lease for a supermarket and liquor store in Kalgoorlie, WA requires an in-depth assessment.
As the ACCC has not approved the acquisition in its Phase 1 assessment, it will require a Phase 2 review for the acquisition to proceed.
The acquisition of the lease relates to a development proposed for a vacant site in Kalgoorlie, WA where Coles is proposing to operate a large format supermarket and liquor store. Coles already operates one existing supermarket and three Liquorland liquor stores in Kalgoorlie.
“We consider the acquisition could substantially lessen competition for the retail supply of groceries in Kalgoorlie,” ACCC Deputy Chair Mick Keogh said.
The acquisition is likely to provide Coles with a significant market share for the retail supply of groceries in a local market where competitive constraint from rival supermarkets may be limited and timely new entry may be unlikely.
The ACCC is also considering whether the acquisition may create, strengthen or entrench Coles’ substantial market power in the local market.
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
“We believe this acquisition needs an in-depth assessment to understand the likely impact it will have on competition in Kalgoorlie,” Mr Keogh said.
“We look forward to speaking to more industry participants and interested parties in the coming weeks.”
The ACCC invites submissions in response to its Phase 2 Notice by 13 February 2026. Parties can contact the ACCC via mergers@accc.gov.au.
It is the first acquisition that the ACCC has considered since additional targeted notification requirements were determined by the Assistant Minister for Competition that apply to acquisitions by Coles and Woolworths.
More information and the Phase 2 Notice will be available on the ACCC’s acquisitions register today here: Coles – supermarket and liquor site in Kalgoorlie, WA
Background
Coles is an Australian public company (ASX:COL) that operates supermarkets and retail liquor stores nationwide.
The lessor, M Holding 4 Pty Ltd, is an Australian private company specialising in residential and commercial property sales, management and development in Western Australia.
Merger control regime
From 1 January 2026, it is mandatory for businesses to notify the ACCC of any acquisition that meets the notification thresholds set by the Minister. They must wait for ACCC approval before they can proceed.
Once notified, the notification is listed on the ACCC’s Acquisitions Register and stakeholder consultation is invited. The ACCC is required to make a decision in 15 to 30 business days in its Phase 1 assessment, subject to any extensions, to either approve the acquisition or decide it is to be subject to a Phase 2 review.
The ACCC can decide a notification is to be subject to a Phase 2 review if the ACCC is satisfied that the acquisition to which the notification relates, if put into effect, could, in all of the circumstances, have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Under the Competition and Consumer Act, a Phase 2 assessment can take up to 90 business days, unless extended under specific circumstances.
From 1 January 2026, there are additional targeted notification requirements on certain acquisitions by Coles and Woolworths.
This includes all acquisitions by Coles and Woolworths of supermarket businesses and all land acquisitions above certain land sizes. These acquisitions are required to be notified regardless of the general notification thresholds or control exemption.
Coles voluntarily notified this acquisition under the formal regime prior to 1 January 2026.
More guidance on the new merger regime can be found on the ACCC’s website: Guidance documents for the merger control regime