The ACCC has decided that Coles Supermarkets Australia Pty Ltd (ASX: COL) (Coles) must not put into effect a proposed acquisition of a leasehold interest over a new supermarket and liquor site in Kalgoorlie-Boulder, Western Australia.
In November 2025, Coles notified the ACCC of a proposal to acquire the lease for a vacant site at 95-106 Great Eastern Highway, Somerville, a suburb of Kalgoorlie-Boulder. Coles proposed to develop the site to operate a full-line supermarket and liquor store. After an initial Phase 1 review, the ACCC determined in January 2026 that the acquisition required an in-depth Phase 2 assessment.
Having concluded its Phase 2 assessment, the ACCC is satisfied that Coles’ proposed acquisition would likely have the effect of substantially lessening competition in the retail supply of groceries by supermarkets in Kalgoorlie.
Consumers in Kalgoorlie are served by four large, full-line supermarkets – Coles, Woolworths and two independent stores (plus two smaller independent supermarkets). The ACCC considers it is likely the acquisition would lead to the exit of an effective independent full-line competitor, and its assets, from Kalgoorlie and result in a reduction in the competitive constraints on the major supermarket chains.
“We conducted extensive inquiries and analysis of material provided by Coles and third parties, and assessed the likely competitive effects of the acquisition on competition in the retail supply of groceries in Kalgoorlie,” ACCC Deputy Chair Mick Keogh said.
“Independent supermarkets are an important competitive constraint on the major supermarket chains. They provide consumers with meaningful choice, competition on service, quality and range, and competition on price for some products.”
“We found that while a new Coles supermarket will offer benefits to some consumers, there is a real prospect that the acquisition would lead to the exit of an effective independent competitor, and its assets leaving the market. New entry would not be timely enough and sufficient to offset the loss of competition likely to result from the acquisition.”
“Based on our assessment of all of the material before us, we are satisfied that there is a real commercial likelihood that Coles’ proposed acquisition would substantially lessen competition in Kalgoorlie in the longer-term, to the overall detriment of consumers,” Mr Keogh said.
Further information, including the Phase 2 Determination, will be available on the ACCC’s acquisitions register today: Coles – supermarket and liquor site in Kalgoorlie, WA.
Background
Coles
Coles is the second-largest supermarket chain in Australia, operating 860 stores nationally. It currently operates one store in Kalgoorlie.
Coles also operates three different chains of liquor stores nationally.
The Acquisition
On 27 November 2025, Coles notified an acquisition of a leasehold interest to open a large format supermarket with a selling floor area of 2,800 square metres and a Liquorland store at the property.
The property is located at Lots 95-106 Great Eastern Highway in Somerville, WA. It is currently vacant. M Holdings 4 Pty Ltd, owned by M/Group, is proposing to develop a neighbourhood centre there.
Full-line supermarkets
Full-line supermarkets sell a full range of grocery items, typically around 20,000 items across all categories. These stores have a large retail floor space to accommodate this range, typically from around 1,500m2 to 4,000m2.
Merger control regime
From 1 January 2026, it is mandatory for businesses to notify the ACCC (or seek a waiver) of any acquisition that meets the notification thresholds set by the Minister. Once notified, the notification is listed on the ACCC’s Acquisitions Register and stakeholder consultation is invited.
Coles and Woolworths must also notify acquisitions of any supermarket business and any legal or equitable interest in land above a certain size, regardless of the monetary notification thresholds.
Coles notified its acquisition of the leasehold interest in Kalgoorlie prior to the mandatory notification requirements commencing, when notification under the new regime was permitted but voluntary. It was therefore subject to the requirements of the new regime.
The ACCC decided that the acquisition would be subject to an in-depth Phase 2 review on 29 January 2026.
The ACCC’s Phase 2 assessments must be completed within 90 business days, unless extended under specific circumstances.
In deciding not to approve an acquisition, the ACCC must be satisfied that the acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in a market.
More guidance on the new merger regime can be found on the ACCC’s website: Guidance documents for the merger control regime.
