ACCC reports more time needed for Bunnings acquisition
Bunnings’ acquisition of family-owned hardware chain Adelaide Tools, is now being delayed after the competition watchdog said it needs more time to consider the matter, according to a recent Inside Retail Australia report
An ACCC spokesperson recently reported 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.
The ACCC typically takes eight to 12 weeks to release its findings, the spokesperson said.
It was in early October 2019, that Bunnings announced its bid to acquire Adelaide Tools, according to the Inside Retail report. 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 big box 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.
“What we’re looking to understand is specific trade categories where we have low market share – industrial tools, hard surface flooring, plumbing, etc,” Mr Schneider told Inside Retail.
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.