ACCC clears Woolworths acquisition of MyDeal
Following an extensive review, the Australian Competition & Consumer Commission (ACCC) says it will not oppose Woolworths’ proposed acquisition of MyDeal.
The competition regulator concluded that both businesses are not “particularly close competitors” and will not substantially lessen competition in any of the relevant markets.
“Following our review and feedback from market participants, we do not consider that Everyday Market from Woolworths is a significant competitor to MyDeal or other online marketplaces and consequently, this acquisition is unlikely to substantially lessen competition,” said ACCC commissioner, Liza Carver
The regulator advised it is “unlikely” the acquisition will leverage Woolworths’ retail position into MyDeal’s online sales marketplace.
“The proposed acquisition will not reduce online marketplace options for third-party sellers as Woolworths / MyDeal will compete with other online marketplaces,” said a statement.
In May, MyDeal’s CEO, Sean Senvirtne, said the transaction is a highly attractive proposition to shareholders and represents a significant premium to MyDeal’s share price
Subsequently, when the transaction is complete, MyDeal will be delisted from ASX. Woolworths Group will acquire a majority 80.2 per cent stake in the online marketplace.