he Australian Competition and Consumer Commission is paying "increased" attention to the major supermarket chains' acquisitions of smaller retailers.

Chairman Rod Sims says the watchdog is keeping an eye on Coles and Woolworths' moves to increase their participation in the liquor, grocery and home improvement sectors, particularly through many small acquisitions.

"The ACCC is concerned to ensure that further acquisitions do not ultimately lead to retail or indeed wholesale industry structures that may adversely affect the competitiveness of these markets or reduce choice for consumers," Sims said in a statement yesterday.

"Because of these concerns, the ACCC has been paying increased attention to incremental acquisitions to identify which acquisitions require review and, of those, which raise competition concerns."

This article first appeared on SmartCompany.