Woolworths Limited - proposed acquisition of Mittagong Home Hardware and Home Mittagong Timber & Trade

Summary

Woolworths Limited and Lowe's Companies Inc through Blue Mountains Hardware Pty Ltd (the Joint Venture) proposed to acquire all interests and assets associated with the business of Mittagong Home Hardware and Home Mittagong Timber & Trade (together, Mittagong Home).

Mittagong Home was a privately owned and operated domestic hardware and home improvement business consisting of two outlets in the southern highlands region of NSW as follows:

" Mittagong Home Hardware, a hardware and home improvement store located at the corner of Princess Street and Bowral Road, Mittagong, NSW; and

" Home Mittagong Timber and Trade, a store which focused on trade sales of truss, timber and building materials, located at 13 Cavendish Street, Mittagong, NSW.

The Joint Venture operated one hardware and home improvement store within the Mittagong local market - a Magnet Mart located on Bundaroo Street, Bowral, NSW.

Market definition

The ACCC considered the proposed acquisition in the context of local markets for the retail sale of hardware and home improvement products on a product category basis.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in any relevant market for the following reasons:

- post-acquisition, the Joint Venture was likely to be constrained by Bunnings which was located in close proximity to Mittagong Home; and

- consumers in the Mittagong area could also switch to buying certain categories of hardware products from several specialty suppliers in the local market.