A delay in the ACCC decision on Woolworths’ proposed acquisition of Petspiration Group has triggered rumours that the deal might not get the green light.
Petspiration owns various pet-based retail stores, including PETstock, PETstock Country, My Pet Warehouse, Pet City and Best Friends, as well as a number of day-care centres, puppy schools, and veterinary services.
Woolworths purchased a 55 per cent stake in the company last December for $586 million, subject to regulatory approval.
Woolworths already owns 60 per cent of online retailer PetCulture, which also offers online veterinary services through its 24/7 VetChat portal.
Two sources told the AFR that the ACCC is parsing prior deals down by PETstock, which has prompted the suspended timeline for the decision, which was due February 14. The ACCC said it was “waiting for more information from Petspiration” before making the decision.
“PETstock bought Best Friends and other retailers, but never got the ACCC approval for those deals as it was not warranted at that time,” a source told the AFR.
“But now that Woolworths is involved, the ACCC is looking at these historical transactions.
“This will be a major problem, and likely result in some stores being divested.”
New Zealand’s competition regulator has already approved the deal.
