The Australian Competition and Consumer Commission (ACCC) said it will not oppose Coles Group's (ASX:COL) unit Coles Supermarkets Australia from acquiring leasehold interests to establish new supermarkets in Victoria, according to a Friday statement by the Commission.

Under a court-enforceable undertaking, Coles is required to sell its ownership and stake in the Kororoit site in the region to Neale Deanside Development, the statement said.

The divestiture will allow a competitor to enter the area, the statement added.

The ACCC confirmed that without the divestiture, the merger may "substantially" lessen competition.