Retailer buys Queensland liquor group

SYDNEY - Coles Myer Ltd, Australia's second-largest retailer, has agreed to buy Queensland-based Mr Corks Liquor Group for A$51 million ($57.5 million).

Buying Mr Corks will give Coles Myer five hotels and 17 liquor stores in Australia's fastest-growing market.

In Queensland, only pub owners can own liquor stores, with each hotelier getting licences to open three liquor outlets in surrounding areas.

"The Mr Corks acquisition furthers the company's strategic objective of growing its liquor business," CEO John Fletcher said in a statement.

The company has about 35 per cent of the nation's A$70 billion-a-year market for groceries and liquor and is playing catch-up to the 40 per cent controlled by Woolworths Ltd.

Shares of Coles Myer rose 16 cents to A$14.18 at the 4.10pm close in Sydney. The company in September rejected an A$17 billion buyout offer from firms led by Kohlberg Kravis Roberts & Co.

- BLOOMBERG