Thu, 14 Jan 2016 | DIVISION SALE
Home Retail Group is nearing a sale of its DIY chain to Wesfarmers, an Australian retailer, in a deal worth £340 million.
Discussions towards the deal began in September, with a definite offer being made in November. Wesfarmers has completed its due diligence, with talks still continuing to sort out the details.
Wesfarmers owns Burnings, Australia's largest home improvement retailer, and the Coles supermarket chain. It is a “substantial and strong group with an ambitious plan” to develop Homebase, Home Retail Group said, adding that the £340 million offer represented good value for the shareholders.
The deal would see Wesfarmers purchase Homebase in its entirety, to include all stores and distribution centres. Habitat and other product brands would not be included in the sale, but would be licensed for use by Homebase for a year.
Sainsbury's confirmed that Home Retail Group had rejected its own bid to buy Argos earlier this month, and reaffirmed its interest in the chain this week. Wesfarmer's move on Home Retail Group could clear a path for Sainsbury's to take Argos over, which would help the supermarket to be a stronger competitor to the likes of Amazon.
It has a deadline of 2 February to make a formal offer for Home Retail. The takeover idea has caused some disquiet amongst shareholders who question the benefit of a deal considering the space-related challenges that face both companies.
Sainsbury's has resolved that it could shut down between 150 and 200 Argos stores and relocate them to nearby Sainsbury's stores with excess space.
Find a business for sale
Successful company operating for over 17 years. Provides a comprehensive range of golf equipment to satisfy all customer requirements, comprising clubs, clothing, bags, trolleys and complementary accessories. Significant scope to invest additional re...
LEASEHOLD
Offers a comprehensive range of services, specialising in the project management and construction management of commercial fit-out projects. Operates from several strategically located premises in South England. Offers invited.
LEASEHOLD
Provides mobile data network solutions and services to businesses operating within a wide variety of sectors. Services include data SIMs with a fixed IP address, dynamic data SIMs, integration services, VoIP and virtual numbers. Serves over 790 activ...
LEASEHOLD
|
14
|
|
Aug
|
Trafford Centre up for sale after Intu administration | COMMERCIAL PROPERTY
Manchester’s Trafford Centre shopping mall is up for s...
|
13
|
|
Aug
|
Administrators bring three former Shepherd Cox Group hotels to market | DIVISION SALE
Administrators have put three hotels in the North of England...
|
12
|
|
Aug
|
Baird Group to close stores as CVA is approved | BUSINESS NEWS
Retailer and wholesaler Baird Group, the license holder for ...
Sign up to receive our acquisition alert emails to get your FREE guide
|
04
|
|
Apr
|
Homebase put up for sale by Australian owner | BUSINESS SALE
High street DIY chain Homebase is up for sale, after its Aus...
|
03
|
|
Feb
|
J Sainsbury's succeeds in buying Argos' owner | BUSINESS SALE
J Sainsbury's can celebrate now that it has secured Arg...
|
02
|
|
Feb
|
Sainsbury's puts forward £1.3bn offer for Argos owner | BUSINESS SALE
Sainsbury's has been circling the Home Retail Group, ow...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources