Woolworths circles collapsed Barossa Valley winery

Woolworths Ltd is circling a collapsed Barossa Valley winery in a move expected to anger local groups who fear of the supermarket giant's growing market power, according to The Australian Financial Review.

Sources have told the newspaper that Woolworths tried to buy Barossa Valley Estate earlier this year, for $13 million, before receivers were appointed to the group.

The supermarket giant is now part of a formal sales process through receivers McGrathNicol.

A push by Woolworths to but wineries could attract interest from the Australian Competition and Consumer Commission, which is already investigating Woolworths for alleged abuse of market power.

According to the AFR, Barossa Valley Estate sells premium wines, and has a 41-hectare vineyard with processing facilities capable of crushing up to 4000 tonnes of grapes.

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