What’s happening with Woolworths’ (ASX:WOW) shares today?

December 08, 2022 03:25 PM AEDT | By Ashish

What’s happening with Woolworths’ (ASX:WOW) shares today? — Image source: © Nilsversemann | Megapixl.com

Highlights

Woolworths’ shares were trading higher despite preliminary competition concerns raised by the ACCC today

The ACCC said that it was also considering whether the acquisition raised similar concerns about liquor stores

Shares of Woolworths Group Ltd (ASX:WOW) were trading higher today despite preliminary competition concerns raised by the Australian Competition and Consumer Commission (ACCC).

Earlier today, the ACCC outlined preliminary competition concerns about Woolworths’ proposed acquisition of the independent supermarket operating as SUPA IGA in Karabar, and a co-located liquor store operating as Liquor Boss, located in New South Wales. Woolworths and SUPA IGA Karabar are, at present, competitors in the area.

Commenting on the development, the ACCC’s commissioner, Liza Carver said, “Competition between supermarkets is important in ensuring different product ranges, promotions, and service offerings. We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of groceries in the local area.

“Within a 5-kilometre radius of SUPA IGA Karabar, it would reduce the number of operators of supermarkets with a significant size and range from four to three, leaving only Woolworths, Coles, and ALDI,” she added.

The ACCC said that it was also considering whether the acquisition raises similar concerns about liquor stores by removing Liquor Boss as an independent competitor to major liquor store operators.

“The ACCC is also investigating the impact of the acquisition on the competitiveness of other independent supermarkets in the region. In particular, whether removing the Karabar store from the IGA network, and removing it as a wholesale customer of Metcash, impacts the efficiency and competitiveness of other stores that operate under the IGA banner, or receive supply from Metcash,” the ACCC added.

Woolworths’ share price performance

Woolworths’ shares were trading at AU$34.38 each, up 0.61%, or 0.21 points, at 2:15 PM (AEDT). In the past one year, the stock has fallen nearly 16%. On a year-to-date (YTD) basis, the share price fell nearly 11%. In the past one month, the share price has risen over 3%.

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