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The corporate watchdog has raised concerns about the proposed purchase of a Darwin beachfront pub and bottle shop by the owner of liquor retail chains, Dan Murphy's and BWS.
Woolworths spin-off Endeavour Group already operates four BWS stores within 5km of the Beachfront Hotel in Rapid Creek, the Australian Competition & Consumer Commission says.
"We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of takeaway liquor in the local area," ACCC Commissioner Liza Carver said on Monday.
Endeavour's existing BWS Nightcliff store is 2.4km from the hotel's independent bottle shop, which operates under the Cellarbrations brand.
"It is important that local consumers in the Rapid Creek area benefit from competition between large liquor stores with different promotions, range and service offerings," Ms Carver said.
The ACCC is also investigating if the proposed purchase will affect other independent liquor stores in Darwin.
Endeavour Group is a major alcohol retailer and hotel operator that manages over 330 licensed hotels across Australia through its subsidiary ALH Hotels.
Its portfolio also includes Jimmy Brings, Shorty's Liquor and Langton's.
As well, it operates Darwin's Airport Tavern about 4km from the Beachfront Hotel.
In a statement, the company said it would "continue to work constructively with the ACCC in its review".
"The Beachfront Hotel is a well-established, premium venue, popular with families, locals and tourists," a spokesman said.
"If the ACCC were to approve the transaction, we would look forward to working with the existing team and community to build on the pub's popularity while maintaining the qualities that make it so well-loved today."
Endeavour Group was demerged from the Woolworths Group in 2021.
In the months before, the retail giant scrapped plans for a Dan Murphy's megastore about 3km from the Beachfront Hotel after health and community groups raised concerns about its close proximity to an Aboriginal community.
