The Woolworths Group Ltd (ASX: WOW) share price is slipping today amid an announcement that its proposed acquisition of online retailer MyDeal.Com.Au Ltd (ASX: MYD) is unopposed by Australian market regulators.
At the time of writing, Woolworths shares are swapping hands for $37.90 apiece, down 0.32% on Thursday's closing price.
In contrast, the MyDeal share price is currently up 0.97% to $1.045.
For comparison, the S&P/ASX 200 Consumer Staples (ASX: XSJ) index is down 0.2%. The S&P/ASX 200 Index (ASX: XJO) is doing slightly worse, recording a 0.59% loss.
Let's take a look at what the Australian Competition & Consumer Commission (ACCC) announced today.
ACCC gives green light to acquisition
In a decision released this morning, ACCC Commissioner Lisa Carver said:
Following our review and feedback from market participants, we do not consider that Everyday Market from Woolworths is a significant competitor to MyDeal or other online marketplaces and consequently, this acquisition is unlikely to substantially lessen competition.
Furthermore, the ACCC found that it was "unlikely" that the merger between Woolworths retail and MyDeal's online presences could lead to anti-competitive practices in the future.
"Woolworths would continue to face significant competition from online marketplace platforms available to third-party sellers," Ms Carver added.
My Foolish colleague Brooke Cooper reported in May that the supermarket offered to acquire MyDeal for $1.05 per share, or a 62.8% premium on the company's closing share price.
Once the deal closes, Woolworths will own 80.2% of the online retailer, with 19.8% held personally by upper management. Woolworths CEO Sean Senvertne will hold a vast majority of this amount with a stake of 18.9%.
Woolworths confirmed the acquisition would be subject to approval from MyDeal shareholders at a scheme of arrangement meeting scheduled for 6 September and court approval.
Woolworths share price snapshot
The Woolworths share price is down 7% over the past year and 0.8% this year to date. However, it has gained 3.5% over the past month.
Woolworths has a market capitalisation of $46.15 billion.
