The consumer watchdog has cleared the way for Coles to buy three Progressive IGA supermarkets in Western Australia.
Coles' plans to buy the three supermarkets, in Perth suburb Dianella and Bunbury and Halls Head south of Perth, had met with community opposition over concerns the purchases could hurt competition.
But the Australian Competition and Consumer Commission (ACCC) said there was at least one other major independent supermarket in each of the communities.
"The ACCC also took into account information that suggested that Aldi would be likely to enter some of the relevant markets in the coming years as part of its expansion into Western Australia," ACCC Commissioner Dr Jill Walker said.
Sales at the Progressive IGA stores had declined and the supermarkets could close if the takeover did not go ahead, the ACCC added.
The stores are expected to be rebranded under the Coles' name in early 2015, and Coles said it would retain all of the existing staff.
The watchdog said it was waiting for more information from Coles before it considered the group's purchase of another Progressive IGA in Busselton.
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