ACCC investigating Bunnings takeover of family business Adelaide Tools
Hardware giant Bunnings’ takeover of family-owned business Adelaide Tools is being investigated by the ACCC for being potentially anti-competitive.
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The takeover of an Adelaide family-owned trade business by hardware giant Bunnings has come under investigation by the national competition watchdog.
The Australian Competition and Consumer Commission has launched an informal review of the deal, which would result in the Wesfarmers-owned business taking control of trade supplier Adelaide Tools.
Its investigation will cover whether the takeover bid would be anti-competitive in the hardware and tools market across South Australia and nationally and its “likely impact … on prices and/or service quality”.
Bunnings last month agreed to purchase Adelaide Tools – started in 1949 – from Rob and Marissa Peach for an undisclosed price.
The merger is subject to regulatory approval.
Adelaide Tools is headquartered at Mile End and has stores in St Marys, Pooraka, Lonsdale and Gawler, as well as Oaklands Mower Centre at Somerton Park.
The ACCC will look into what factors would sway a customer to buy from Adelaide Tools over Bunnings or vice versa.
Local tradies and tool suppliers are able to make submissions to the investigation until Thursday, November 21, via the ACCC website.
Bunnings intends to continue trading under the Adelaide Tools business name.
Bunnings managing director Mike Schneider said: “As with any acquisition of this nature, we engaged with the ACCC to ensure they could conduct any necessary review required.”
“We look forward to hearing the decision in due course.”
Bunnings already owns 14 warehouse hardware stores, two small stores and two trade
centres across Adelaide.