Metcash completes Mitre 10 takeover

Grocery wholesaler Metcash has completed its 100 per cent acquisition of hardware chain Mitre 10.

Metcash, which supplies IGA supermarkets, had announced its bid to gain full ownership of Mitre 10 on June 20, and raised $325 million in a share sale to fund the acquisition, as well as the purchase of Automotive Brands Group.

Metcash says it paid around $46.5 million to buy the 49.9 per cent of Mitre 10 it did not already own.

The move is a response to the growing dominance of Wesfarmers and now Woolworths in the hardware sector, where Wesfarmers' Bunnings chain has recorded very strong profit growth.

Metcash's chief executive Andrew Reitzer says his company's stake in Mitre 10 has performed well, and full ownership will provide new opportunities to expand.

"Mitre 10 has proven to be a highly strategic and value adding business pillar for Metcash," he noted in a statement.

"The acquisition will provide an enhanced ability for Metcash to leverage its proven merchandising and brand management skills and world class logistics capability into the hardware sector." Metcash shares were down 1 cent at $3.34 by 10:30am (AEST).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9286-0.0079-0.84%
    AUDUSD=X
    0.5535-0.0032-0.57%
    AUDGBP=X
    0.6716-0.0068-1.00%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg