Metcash launches bid for Woolworths’ Home Timber & Hardware

Metcash has launched a bid for Woolworths’ Home Timber & Hardware business, according to the ACCC.

Metcash has launched a bid for Woolworths’ Home Timber & Hardware business, the competition watchdog has revealed this morning.

Talk of Metcash interest in the Home Timber & Hardware business has been prominent since last year as Woolworths eyes a full exit from the hardware space after the disastrous Masters expansion.

The Australian Competition and Consumer Commission revealed on Friday it had begun initial inquiries into a Metcash-Home Hardware tie-up after being informed of a proposal to acquire the group.

The Home Hardware operation is smaller than Masters, but does manage to turn a profit.

Woolworths requested bids for the Home Timber & Hardware and Masters businesses on Monday, with few details known about the extent and quality of the offers received.

Private equity firms have been tagged as likely contenders, although Metcash could be in the box seat for Home given likely synergies with its Mitre 10 operation.

The watchdog has requested submissions from interested parties by May 20, with a decision currently pencilled in for June 30.

At 1pm (AEST), Metcash stock slid 0.43 per cent to $1.75, while Woolworths rose 0.62 per cent to $21.05.