- Australian Competition and Consumer Commission (ACCC) has given the green light for Wesfarmers to acquire Catch Group
- The company announced on June 12 it is planning on acquiring the online retailer Catch for $230 million to be paid in cash
- The ACC has determined that Wesfarmers Kmart and Target stores with Catch would not have relevant impact on the retail competition
Australian Competition and Consumer Commission (ACCC) has given the green light for Wesfarmers to acquire Catch Group.
The company announced on June 12 it is planning on acquiring the online retailer Catch for $230 million to be paid in cash.
Catch is Australia’s number one online retailer and registers 20,000 new members every week.
The online store offers out-of-season, clearance or overrun branded products, as well as operating a growing online marketplace through which third-party sellers supply products.
The ACC has determined that Wesfarmers Kmart and Target stores with Catch would not have relevant impact on the retail competition.
“The current growth in online marketplaces is fostering competition between providers, and feedback indicated that Wesfarmers,” ” ACCC Commissioner Stephen Ridgeway said.
The ACC also agreed that Catch and Wesfarmers are not close competitors based on the companies business models.
If the acquisition goes ahead, Catch will operate independently of Wesfarmers’ like other retail businesses such as Bunnings, Kmart, Target and Officeworks.
Catch will be overseen by Kmart Group Managing Director Ian Bailey.
Wesfarmers is an Australian conglomerate with headquarters in Perth, Western Australia and has been running for 105 years.
Catch CEO Nati Harpaz is looking forward to becoming part of Wesfarmers Group and will benefit Catch’s business partners and customers.
“Catch will continue to deliver innovation in the online market in Australia, with the focus of delivering great value and savings to our customers,” he said.
The acquisition is planned to help Wesfamers move its popular Big W and Kmart brands into the digital world.
Wesfarmers Managing Director Rob Scott will help grow the companies online presence.
“This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group,” he said.
Wesfamers has gained 0.77 per cent today and is currently selling shares at $39.16 per share.