18th Jan 2016 06:38
LONDON (Alliance News) - Australian conglomerate Wesfarmers Ltd on Monday said it has struck a GBP340.0 million deal to acquire the Homebase DIY and garden centre arm of FTSE 250-listed Home Retail Group PLC.
The pair disclosed they had entered into advanced talks about the sale of Homebase to Wesfarmers last week, but the deal has now been agreed and has the unanimous backing of Home Retail's board, Wesfarmers said.
Wesfarmers said it expects the deal to complete in the first quarter of 2016 and said the deal will complement its existing Bunnings DIY chain business in Australia and New Zealand.
Richard Goyder, the managing director of Wesfarmers, said the acquisition of Homebase will back the long-term growth of the Bunnings business. It intends to invest GBP500.0 million in the Homebase estate over the next three to five years.
By Sam Unsted; [email protected]; @SamUAtAlliance
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