ACCC delays ruling on Bunnings takeover of Adelaide Tools

The competition watchdog has delayed its decision on hardware giant Bunnings’ takeover of Adelaide Tools.

Bunnings has a dominant role in the DIY hardware market.

The competition watchdog has delayed its decision on hardware giant Bunnings’ takeover of Adelaide Tools until February 7 due to delays in information sought.

Bunnings’ circa $30 million deal is to buy the specialist lawnmower and up-market DIY business with five stores in Adelaide is expected to receive clearance.

But Bunnings size in the industry means the Australian Competition and Consumer Commission looks at any acquisitions it makes to assess any potential breach of its provisions.

The ACCC inquiry underlines the sensitivity around any expansion through acquisition after the collapse of Woolworths’ Masters stores three years ago.

Bunnings has an estimated 50 per cent share of the DIY market and 16 per cent of the home improvement market.

Adelaide Tools, owned by Marissa and Rob Peach, is a 70-year-old family-owned and operated business serving tradies and high-end DIY enthusiasts at five Adelaide stores. It also has an online business offering more than 8000 products.

A decision was originally due this week but it is understood the holiday season has delayed the receipt of information.

The ACCC has been looking at the deal since November last year.