The Australian Competition and Consumer Commission has raised concerns about the sale of four Western Australian Supa IGA stores to the Wesfarmers-owned Coles.
The ACCC said its preliminary view was that the sale may result in a substantial fall in competition in one or more of the local markets for supermarket retailing.
The Metcash-owned stores are located in Dianella, Bussleton, Halls Head and Bunbury Forum.
Bussleton and Halls Head stores each have an attached liquor licence.
The ACCC said there were no other Supa IGA stores in at least three of the four local markets.
“Market participants have expressed concern about losing the differentiated offering of their local Progressive Supa IGA stores,” ACCC commissioner Jill Walker said.
“The ACCC is concerned that the proposed acquisition would remove access to Supa IGA promotions for shoppers in these areas.”