Coles Cleared for Two New Victorian Supermarket Sites After ACCC Forces Key Divestment

Based on an ACCC media release published on 19 December 2025.

Australia’s supermarket landscape continues to evolve, with the Australian Competition and Consumer Commission (ACCC) confirming it will not oppose Coles Supermarkets Australia Pty Ltd.’s acquisition of new leasehold interests in Mt Atkinson Major Town Centre and Deanside Central Town Centre. However, the green light is conditional: Coles must divest its interest in a nearby Kororoit Town Centre site to preserve competition in Melbourne’s booming Melton Growth Corridor.

This update is based on the ACCC’s original media release. Bane Legal Services does not provide legal advice. We are a legal matchmaking service leveraging more than 30 years of business experience to connect clients with the right commercial lawyers.

ACCC safeguards consumer choice as Coles expands with conditions in Victoria’s growing supermarket markets.

Why the ACCC Intervened

Mt. Atkinson, Deanside, and Kororoit sit within just a few kilometres of each other in Melbourne’s northwest. Each site is appropriate for a large-format supermarket, making the distribution of control especially important for competition in emerging suburbs.

The ACCC identified that if Coles held three supermarket sites within such close proximity, consumers in these new growth areas would face limited choice, heightened barriers to competition, and fewer opportunities for rival operators to enter the local market.

According to ACCC Deputy Chair Mick Keogh, granting Coles control of three viable sites would give it a significant competitive height advantage. The agency’s assessment highlighted that alternative supermarket locations in the area are scarce, increasing the risk that Coles would dominate the region’s grocery supply options.

The Required Divestment

To resolve these concerns, Coles offered a court-enforceable undertaking. Under this arrangement, Coles Group Property Developments (CGPD) must divest the Kororoit site to Neale Deanside Developments Pty. Ltd. (trading as Oreana). The ACCC approved Oreana as the purchaser, ensuring the site remains available for a competing supermarket operator.

The divestment must be completed no later than 31 July 2026. Coles must also terminate its existing agreement for lease of the Kororoit site.

Protecting Competition in Emerging Suburbs

The ACCC’s stance reflects broader concerns identified in its 2025 Supermarkets Inquiry, which noted that Coles and Woolworths together control approximately 67 percent of Australia’s grocery supply market. The Inquiry also highlighted ongoing challenges associated with securing suitable supermarket sites due to planning and zoning laws, barriers that can disproportionately affect new entrants.

The ACCC emphasised that ensuring Kororoit remains accessible for a rival operator is vital for residents within the Melton Growth Corridor. Without intervention, the ACCC concluded the acquisitions would substantially lessen competition across both local markets and the broader growth area.

What This Means for Developers, Retailers and Investors

This development reinforces a key message for businesses operating in retail property, mergers, acquisitions, and grocery supply chains: the ACCC is closely scrutinising land acquisitions and long-term leasehold interests where they may impact future competition.

For organisations navigating similar transactions, early competition law risk assessment is essential, particularly within concentrated markets such as grocery retailing.

Bane Legal Services can help connect you with the right competition or commercial lawyer to review acquisition structures, ACCC compliance obligations, or strategic growth plans across regulated sectors. While we do not provide legal advice, we ensure you are matched with legal professionals who specialise in your industry and commercial objectives.

Further Information

For more detail, refer to the ACCC’s public register and the ACCC’s original media release.