ACCC defers decision on Metcash’s purchase of Home Timber & Hardware

The ACCC has delayed its Home Timber & Hardware decision as it considers a fresh undertaking from Metcash.

Metcash CEO Ian Morrice. The ACCC has confirmed it will delay its ruling on Metcash’s planned $250 million acquisition of Home Timber & Hardware (James Croucher)

Metcash has submitted an undertaking to the ACCC to get clearance for its proposed $250 million purchase of Home Timber & Hardware from Woolworths.

The ACCC was due to make its decision on the deal today and was expected to issue a statement of issues to seek more comment on the deal. But the timetable was suspended this morning pending consideration of the Metcash undertaking.

The proposed deal would reduce the number of independent wholesalers from two to one and has been strongly opposed by independent hardware stores.

Metcash operates the Mitre 10 chain which competes with Wesfarmers dominant Bunnings chain.

The undertaking was not made public but would offer guarantees in terms of dealing with independents to ensure they are treated fairly.

The ACCC is normally reluctant to agree to such behavioural undertakings because they are hard to enforce.

The ACCC, which commenced its review on May 6, said it would announce a new decision date “in due course”, noting that it might be a final decision or a statement of issues. The deal remains on hold until the ACCC considers the undertaking.