Supabarn, a Canberra based independent supermarket chain, is selling some of its stores to big player Coles, the Wesfarmers business.
A price hasn’t been announced but it involves supermarkets in Canberra and in Sydney but excludes SupaExpress stores.
The current owners, the Koundouris family, say the sale includes the Civic, Wanniassa, Kaleen and Crace stores and the Casey store under construction.
A spokesman says the owners have decided to scale down for family reasons.
Coles says it will invest about $15 million in store improvements and create around 100 new jobs in Canberra following the purchase of the five stores.
The ACCC (Australian Competition and Consumer Commission) is reviewing the sale.
“Given Supabarn’s position as a significant independent supermarket chain, an important focus of the ACCC’s review will be whether its removal as a competitor would substantially lessen competition between supermarket chains,” says ACCC chairman Rod Sims.
Superbarn says it tries to buy locally when possible.
Coles and its main rival Woolworths have been under pressure from small players and new entrants including the German group Aldi.
Margins are falling as the supermarkets compete mainly on price.