ACCC says it needs more time to consider Bunnings acquisition
Bunnings’ acquisition of family-owned hardware chain Adelaide Tools is facing a delay after the competition watchdog said it needs more time to consider the matter.
A spokesperson for the ACCC confirmed the commission has pushed back the provisional date for the announcement of its findings to February 14. They also said the provisional decision date may be a final decision or release of a statement of issues.
While the spokesperson said each merger presents different factors that need to be taken into consideration, the ACCC typically takes eight to 12 weeks to release its findings.
Bunnings announced its bid to acquire Adelaide Tools roughly four months ago in early October 2019. The family-owned business has five stores, a mower centre and online store, and caters specifically to tradies, a market that currently accounts for about 35 per cent of Bunnings’ overall revenue and which the national retailer is keen to grow.
“The Bunnings Warehouse format fulfills a lot of needs, but there are opportunities to be even more convenient for specific trades,” Mike Schneider, Bunnings’ MD, told Inside Retail shortly after the acquisition was announced.
“What we’re looking to understand is specific trade categories where we have low market share – industrial tools, hard surface flooring, plumbing, etc,” Mike Schneider, Bunnings’ MD, previously told Inside Retail about the acquisition.
Bunnings currently operates 31 Bunnings Trade Centres across Australia and New Zealand and three Frame & Truss Plants in Australia, which predominantly carry timber and building material products.
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