00:01This is the first decision by the ACCC since it got new and expanded scrutiny powers over
00:08mergers and acquisitions, especially on supermarkets at the start of this year.
00:15Now this decision initially raised alarms from the ACCC in March. It said at the time
00:21that it had concerns that this second coal supermarket in the city of Kalgoorlie would
00:26effectively knock out other competitors. As you can see here in the city there's already one Coles,
00:33a Woolworths, there's two IGA's and there is two other smaller independent Spudshed and Foodworks.
00:41Now this is the proposed second coal supermarket. The ACCC today has made its final determination and
00:49it says yes it has too many concerns that this other Coles would effectively lead to the closure
00:55of an independent in the city and that would lessen competition in the region. So the supermarket
01:01giant has responded this morning. It says that it disagrees with the ACCC's decision. Now here is
01:08some of their statement. They say that the blocking of the development of a new supermarket on the
01:13vacant site does not promote competition. The company says it actually denies Kalgoorlie shoppers
01:20greater choice and convenience and they say that they believe the ACCC has underestimated the city's
01:26future growth and demand. Now under the new regime for the scrutiny of acquisitions and mergers across
01:35Australia, the supermarket giant now has the possibility of taking this to an appeal to the
01:41competition tribunal where it could be assessed not only by a judge but also by an economist and a business
01:48person so Coles has not yet said if it will actually take this appeal route. Some people in the city
01:55believe that hey we are a growing city we deserve another supermarket while other people did share
02:02concerns about the closure of smaller independents. So a mixed bag there and as I noted we do not know
02:10if Coles will officially formally appeal this decision.
