The competition watchdog won't oppose Metcash's bid for Woolworths' Home Timber and Hardware business after the supermarket wholesaler promised to let stores buy products from other sources.
Metcash, which already owns Mitre 10 hardware chain, made a court-enforceable undertaking to address the Australian Competition and Consumer Commission's concerns that the deal would leave it as the only full-service wholesale options for independent hardware and home improvement retailers.
"We decided to accept Metcash's undertaking, which should provide independent retailers with the ability to bypass Metcash by using buying groups or negotiating directly with manufacturers. This should also facilitate entry by any new wholesaler that may emerge," ACCC chairman Rod Sims said in a statement.
