ACCC to have more power on acquisitions

Retail giants Woolworths and Wesfarmers, owners of Coles, may have to adjust their
plans to buy out smaller rivals and develop new outlets after the federal government
announced plans to toughen up market protection.
The government will give its competition regulator power to crack down on what are
known as "creeping acquisitions", where big companies seek to expand their market
power by buying up smaller operations.
The move will ensure the Australian Competition and Consumer Commission has the
power to reject acquisitions that would substantially lessen competition in any
local, regional or national market.
The government will also ensure that the commission has the power to review
acquisitions of greenfield sites.
That move is aimed at preventing the two major supermarket chains from substantially
lessening competition by buying up land in a local area to keep out competitors,
Competition Policy and Consumer Affairs Minister Craig Emerson said.
"The government is seeking to open opportunities for competition in grocery
retailing by removing anti-competitive barriers to entry," he said in a statement.