Woolworths has cleared a major hurdle in its path to taking on Bunnings in the big box hardware business, with the ACCC granting conditional approval to the $87 million takeover of Danks.
The regulator has accepted a number of court enforceable requirements aimed at ensuring the Woolies – Lowe’s joint venture does not discriminate against independent hardware retailers who are also supplied by Danks.
Mitre 10′s chief says the ACCC’s undertakings won’t be enough to prevent the $36 billion hardware industry becoming dominated by Woolworths and rival Wesfarmers.
The Danks acquisition offer will close on November 19.
Woolworths
ASX Code: WOW
Wesfarmers
ASX Code: WES
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For more on this story:
- ACCC: “Woolworths remedies ACCC concerns with hardware acquisition”
- The Australian: “ACCC lets Woolies nail Danks deal”
- The Age: “Mitre 10 unhappy over Woolworths-Danks deal”
