The Australian Competition and Consumer Commission (ACCC) has revealed that it will not raise objections to Endeavour Group’s planned purchase of Rye Hotel in Victoria.
Earlier this year, ACCC opened a consultation to seek opinions from consumers and businesses on the planned purchase of the hotel.
Rye Hotel comprises a hotel, accommodations, and an adjoining standalone drive-through liquor store that operates under the Thirsty Camel brand.
Endeavour manages BWS Rye, along with multiple stores in the nearby towns of Rosebud and Sorrento.
ACCC commissioner Stephen Ridgeway said: “The ACCC did not have any concerns in relation to accommodation, gaming or meals, given the number of competitors in the area offering these services and Endeavour’s limited presence in these local markets.
“However, we did give close consideration to whether this proposed acquisition would lead to a substantial increase in local market concentration in liquor retailing.”
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Following an evaluation, ACCC determined that despite the merger of the two biggest local liquor stores, this transaction is expected to not reduce competition in the market.
The commission further noted that this is due to the unique circumstances surrounding the transaction.
In its evaluation, ACCC also concluded that consumers in the local area will have access to various promotions, pricing, ranges, and service offerings.
This includes options available at two adjacent Thirsty Camel branded stores, Peninsula Cellars and Tootgarook Fine Wine Cellars.
Ridgeway added: “The ACCC will continue to closely consider consolidation in local markets, particularly acquisitions that occur within a pattern of serial acquisitions.”
Additionally, ACCC determined that the planned acquisition is expected to not decrease competition among other Thirsty Camel branded stores or weaken independent wholesalers.
Located on the Mornington Peninsula, Rye Hotel has 30 poolside suites and 13 luxury beachfront suites along with a three-bedroom apartment.
It also features a restaurant and event venues for both corporate and social gatherings.