Metcash is planning a takeover bid for Mitre 10, aiming to acquire 100 per cent of the group in either 2012 or 2013 and become the ‘champion of the independent hardware retailer’.
Metcash today submitted a board approved conditional proposal to subscribe for an initial interest in 50.1 per cent of the Mitre 10 group.
Metcash says that entry into the Australian hardware sector via Mitre 10 provides a good opportunity to leverage its proven merchandising and brand management skills, which would benefit Mitre 10’s independent hardware retailers.
“Recent developments in the hardware sector have materially changed the landscape and outlook for independent operators,” said CEO Andrew Reitzer.
“Based on our experience and success in the competitive food and liquor sector, a Metcash backed Mitre 10 wholesaler will enable Mitre 10’s retail customers to compete more effectively in an increasingly competitive marketplace.”
The news comes after Woolworths’ $24 billion plan to acquire hardware distributor Danks Holdings recently got the go ahead.