Media - Nick Xenophon - Independent Senator for South Australia

Independent Senator for South Australia Nick Xenophon says the decision by the ACCC to allow Woolworths and Lowes to take over hardware wholesaler Danks will hurt competition and consumers.

"Woolworths already has an unacceptable level of market power and this deal just makes a bad situation worse," Nick said.

The ACCC gave the green light to the Woolworths and Lowes take-over plan after Woolworths granted a series of undertakings about how it would treat independent retailers who are supplied by Danks.

"Basically Woolworths has said 'trust us' and the ACCC has bought it," Nick said. "Well I'm sorry but I don't trust Woolworths not to abuse its power."

"In the grocery market, in the fuel markets, in the liquor markets, this is a company that has clearly demonstrated over the years a willingness to use its market power to destroy competition," Nick said.

"This deal will inevitably see independents driven out of the market, which will mean consumers will end up paying more," Nick said.

Senator Xenophon has been contacted by a significant number of independent retailers across the country in the past weeks who have expressed concerns that the Danks take-over will allow Woolworths to move in and eventually dominate the hardware sector.

"How much more market power does the ACCC and the government want to give this company?" Nick said. "The bigger Woolworths gets, the bigger our shopping bills will get. It is a frighteningly simple equation."