ACCC Concerned Over Bunnings & Adelaide Tools Acquisition
The ACCC has today raised concerns over the stifling of competition if Bunnings successfully acquires Adelaide Tools and Oaklands Mower Centre.
The commission argues that Bunning already dominates in the tools and outdoor power equipment market in Adelaide and that the deal would give consumers less purchasing power.
‘Bunnings has a very powerful position in hardware, building supplies and home improvement,’ ACCC Chair Rod Sims said.
‘Since the exit of Woolworths’ Masters from the industry, Bunnings has grown rapidly and has become by far the leading player.’
‘The ACCC considers that tools specialists, such as Adelaide Tools, are Bunnings’ closest and strongest competitors for the supply of tools and outdoor power equipment, particularly to trade customers,’ he said.
‘Our preliminary view is that the proposed acquisition would stifle this competition.’
The ACCC said they will continue to consider the extent the possible acquisition would take on other tool and outdoor power equipment retailers, and if it would give Bunnings an unfair advantage of wholesale supply of tools in Australia.
The ACCC’s final decision is scheduled for 23 April 2020.