Canberra, January 29, 2026 —The Australian Competition and Consumer Commission (ACCC) has decided to subject Coles Group Limited’s proposed acquisition of a supermarket and liquor store lease in Kalgoorlie, Western Australia, to a Phase 2 merger review, citing concerns that the transaction could substantially lessen competition in the local groceries market.
The acquisition relates to a lease for a planned large-format supermarket and liquor store on a vacant site in Kalgoorlie. Coles already operates one supermarket and three Liquorland liquor stores in the area. After completing its Phase 1 assessment, the ACCC concluded that the transaction warrants closer scrutiny and declined to grant early approval.
According to the authority, the deal could significantly increase Coles’ market share in the retail supply of groceries in Kalgoorlie, a local market where competitive constraints from rival supermarkets may be limited and where timely new entry is considered unlikely. The ACCC is also examining whether the acquisition may create, strengthen, or entrench Coles’ substantial market power in the area.
ACCC Deputy Chair Mick Keogh said the authority had not reached a final conclusion but believed a deeper assessment was necessary to understand the transaction’s potential impact on competition. He added that the commission plans to consult further with industry participants and other interested parties during the second-phase review.
The Phase 2 process allows the ACCC to gather additional information and assess whether the acquisition could have the effect, or be likely to have the effect, of substantially lessening competition in any market. Under Australian law, a Phase 2 review can take up to 90 business days, subject to extensions in specific circumstances.
The ACCC has invited submissions from interested parties in response to its Phase 2 Notice, with a deadline of February 13, 2026.
The proposed transaction is notable as it is the first acquisition assessed by the ACCC since additional targeted notification requirements for Coles and Woolworths were determined by the Assistant Minister for Competition. From January 1, 2026, certain acquisitions by the two major supermarket groups — including all supermarket acquisitions and land purchases above specified thresholds — must be notified to the ACCC regardless of whether general notification thresholds are met.
Although Coles voluntarily notified the Kalgoorlie transaction under the formal merger regime prior to the new rules taking effect, the deal is now being reviewed within the framework of Australia’s updated merger control system, which introduced mandatory notification and approval requirements at the start of the year.
Under the revised regime, the ACCC must either approve a notified acquisition following Phase 1 or determine that it should proceed to an in-depth Phase 2 review where competition concerns cannot be ruled out at an early stage.
