Woolworths announced last Tuesday that support for the company's joint venture takeover has reached 90.07 per cent. Conducted alongside American hardware retailer Lowe’s, the takeover was dependent upon Woolworths securing a minimum of 90 per cent ownership of Danks Holdings before it could acquire all outstanding stock.
Last Monday, one day before Woolworths’ announcement, the deadline for Danks Holdings’ shareholders to accept the offer of $13.50 cash per share was extended by 30 days to November 19.
The Australian Competition and Consumer Commission’s assessment of the takeover will be released on October 29 and, following the acceptance of 90.07 per cent, it now presents the only potential obstacle in the takeover bid.
Danks Holdings’ supply chain will be utilised by Woolworths and Lowe’s to establish a series of hardware stores that will compete directly with Bunnings, a hardware chain owned by Westfarmers. Also owned by Westfarmers is the Coles supermarket chain, which is widely regarded as Woolworths’ closest rival.