Bunnings’ proposed acquisition of Beaumont Tiles has been given the green-light by the ACCC, which said the buy-up won’t impact competition.
“At first glance, Bunnings taking over a major tile retailer appears concerning, but our investigation found that Bunnings is not a strong competitor in tile sales,” ACCC chair Rod Sims said.
“This is not a case of a close competitor buying up its rival. However, [this decision] should not be read as any indication that the ACCC will reach the same conclusion in relation to future possible acquisitions by Bunnings.”
According to Sims, Bunnings doesn’t operate in the tile market on the same scale as Beaumont Tiles, meaning they aren’t considered rivals: Bunnings tends to sell small volumes of tiles to DIY customers, while Beaumont is a specialist retailer that offers advice and referrals to tilers and larger builders, usually delivering a large number of tiles directly to work sites.
Bunnings’ managing director Mike Schneider welcomed the decision, stating the company looks forward to finalising the transaction over the coming weeks.
“Beaumont Tiles is a well-run business that operates in a large, competitive category that has strong growth prospects,” Schneider said.
“The acquisition represents an opportunity to build on the success of the Beaumont Tiles business and invest in its future growth. “The current management team will remain in place and Beaumont Tiles will continue to be based in Adelaide and we can’t wait to welcome the team to the Bunnings family.”
The tile specialist operates 115 locations across Australia. Beaumont Tiles executive chairman Bob Beaumont will retire following the acquisition, bringing his 53-year career to an end.