Bunnings Group Ltd - completed acquisition of the stock and fixed assets of Costa's Mitre 10 store in Werribee
Type of assessment
Bunnings Group Ltd
The stock and fixed assets of Costa's Mitre 10 store in Werribee
Hardware & Home improvement
On 29 March 2012 Bunnings acquired the stock and fixed assets associated with Costa's Mitre 10 store in Werribee from the Costa family.
Outcome of assessment
Total review days *
Commenced public review
15th March 2012
31st July 2012
The ACCC considered the completed acquisition in the context of the local market for the retail supply of hardware and home improvement products. The ACCC considered that Bunnings and Costa's Mitre 10 Werribee are likely to compete with retailers of varying formats, store sizes and product specialisations, but that hardware stores of similar product range, promotional activity, store format and location are likely to be closer competitors. However, this was not considered to be a determinative factor in the competition analysis.
The ACCC considered that the completed acquisition was unlikely to result in a substantial lessening of competition in the local market for the retail supply of hardware and home improvement products. In reaching this view, the ACCC had regard to the existence and continued operation of Costa's Mitre 10 store in Hoppers Crossing, which is located in close proximity to both Bunnings and the target store. The ACCC therefore considered that:
- the merged firm was likely to continue to be constrained by Costa's Mitre 10 Hoppers Crossing; and
- Mitre 10's offers would continue to be made available to customers in the local area.
The ACCC also notes that a Masters Home Improvement store is likely be established at Williams Landing, near Hoppers Crossing, in the foreseeable future.
15th March 2012
ACCC commenced review under the Merger Review Process Guidelines.
5th April 2012
Closing date for submissions from interested parties.
1st August 2012
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.