Competition regulator the ACCC has given the greenlight for Wesfarmers’ hardware chain Bunnings to acquire national tile retailer Beaumont Tiles.
Bunnings announced earlier this year it intended to purchase Beaumont Tiles, which operates 115 stores around the country, following on from its recent acquisition of Adelaide Tools.
ACCC chair Rod Sims said in a statement on Thursday morning clearing the deal that while the deal appeared to be problematic at “first glance”, the Commission found that Bunnings was not a strong competitor in the tile space and the move was not a case of a close competitor buying up its rival.
“However, the ACCC’s decision not to oppose this deal is based on the specific circumstances and should not be read as any indication that the ACCC will reach the same conclusion in relation to future possible acquisitions by Bunnings,” Mr Sims said on Thursday.
“The way in which Bunnings is competitively constrained by specialised retailers, and the potential impact on customers and manufacturers, varies depending on the product and market circumstances.”
“Any future expansion by Bunnings into more specialist retailing categories through acquisition of existing competitors will be very carefully considered by the ACCC.”
Mr Sims said following the acquisition, a number of smaller tiles retailers will remain and provide ample competition to Bunnings.
