The Australian Competition and Consumer Commission will not oppose the
proposed acquisition of Hudson Building Supplies Pty Limited (Hudson) by
Woolworths Limited and Lowe’s Companies Inc (Joint Venture).
Hudson is a chain of stores in New South Wales and Queensland supplying
building materials, hardware, and home improvement products.
ACCC Chairman Rod Sims explained that the proposed acquisition was not likely
to substantially lessen competition in any local market for the retail supply
of building supplies, hardware and home improvement products.
According to the Commission, the primary customer segment serviced by Hudson
is builders who have materials delivered to building sites, with some overlap
between Hudson and the Joint Venture’s Masters stores in the supply of products
and services to smaller trade customers from their respective retail outlets.
While the degree of overlap in this customer segment was limited, ACCC found
that the Joint Venture would likely be competitively constrained by a number of
retail competitors in each of the relevant local markets following the proposed
acquisition.
