M&A

10 November, 2009

Australian watchdog clears Woolworths bid for Danks

MELBOURNE, Nov 11 (Reuters) - Australia's competition regulator on Wednesday cleared Woolworths Ltd's (WOW.AX) proposed joint takeover of hardware wholesaler Danks Holdings Ltd (DKS.AX), a key plank in the supermarket chain's expansion into hardware.

The Australian Competition and Consumer Commission said it allowed the takeover to go ahead after Woolworths and its bidding partner, U.S. firm Lowe's Companies Inc (LOW.N), promised not to discriminate against smaller hardware retailer customers.

"With these undertakings in place, the ACCC considers the proposed acquisition unlikely to result in a substantial lessening of competition," commission Chairman Graeme Samuel said in a statement.

Woolworths plans to buy Danks for A$88 million ($82 million) in a joint venture with Lowe's, the No.2 U.S. home improvement chain, to supply large-format hardware stores they are setting up together in Australia. ($1=1.077 Australian Dollar) (Reporting by Sonali Paul; Editing by Jonathan Standing)

Source: http://www.reuters.com