Australian retailer Woolworths’ merger with organic grocery chain Macro Wholefoods has been given a tick of approval from the country’s corporate watchdog.
The retailer’s planned acquisition of the chain was strongly opposed by some of Australia’s smaller retailers like Metcash, but the Australian Competition and Consumer Commission (ACCC) said the deal would not hamper competition.
Woolworths will buy the eight Macro stores in Sydney and Melbourne for somewhere between A$20m and A$30m, reported Dynamic Business.
Macro will be rebranded as Woolworths’ new Thomas Dux gourmet food chain, adding to the current two stores.
The ACCC said Macro and Woolworths were not significant competitors.
“Organic products are only a small component of the range in Thomas Dux stores and make up less than one percent of sales in Woolworths’ full-range supermarkets - their closest competitors are other supermarkets,” said acting ACCC chairman Peter Kell.
