Wesfarmers' $700 million bid for Britain's second-biggest home improvement chain has elicited warnings that the Coles supermarket owner could replicate Woolworths' Masters disaster if it doesn't assemble the right team to drive the business.

The Homebase acquisition is still being finalised and requires approval from shareholders in the group's British owner, Home Retail Group, which is itself subject to a £1 billion ($2 billion) takeover approach from iconic UK retail chain Sainsbury's.