Supermarket giant Woolworths to extend its reach, announcing a takeover bid for Danks Hardware
August 25, 2009
Supermarket juggernaut Woolworths is attempting to break Bunnings’ dominance of the hardware market by announcing a multi-million dollar takeover bid of Danks Hardware.
Woolworths intends to buy the Danks empire which includes Home Timber and Hardware and Thrifty Link for $87.6 million.
The Danks board has given its approval, meaning it may only be a matter of time before Woolworths and Coles extend their rivalry beyond supermarket shelves.
Coles is owned by Wesfarmers which also owns the popular Bunnings brand.
Woolworths intends on incorporating Danks stores into its supply chain network, and the news of the proposed acquisition preceded a 7.2 percent drop in Wesfarmers shares today.