Coles is challenging the ACCC’s decision to block its proposed acquisition of a leasehold site in Kalgoorlie, WA.

The grocer previously notified the regulator of a proposal to acquire a leasehold interest in Lots 95-106 Great Eastern Highway, Somerville, Kalgoorlie, to develop a supermarket with a saleable floor area of 2800sqm.

Under the ACCC’s new merger control regime, which began on January 1, major supermarket chains must notify the watchdog of any planned acquisition of land with a commercial building that is larger than 1000sqm or vacant land larger than 2000sqm.

Following a review, the regulator decided to block the deal, saying that it would “substantially” lessen competition in the retail supply of groceries by supermarkets in Kalgoorlie.   

ACCC deputy chair Mick Keogh at the time said that a new Coles supermarket would benefit some consumers, but added that there is a “real prospect” that its arrival would lead to the exit of an independent competitor in the area.  

In its application to the Competition Tribunal, Coles said it was dissatisfied with the “objectively incorrect” decision.

“Coles respectfully disagrees with the ACCC’s assessment and remains of the view that the proposed development would not substantially lessen competition in Kalgoorlie,” the company’s spokesperson said.

“Coles also considers that the issues raised by the determination may have broader implications for future supermarket developments under the new merger regime.

“Kalgoorlie is experiencing significant industrial activity, planned residential growth and comprises a substantial FIFO workforce, all of which are expected to increase demand for supermarket capacity across the region,” the spokesperson added.

A case management hearing will be held on July 21.