Wesfarmers Limited
(ASX:WES) has made a conditional offer to acquire UK retailer Homebase for cash consideration of $699 million.
Homebase is the second largest home improvement and garden retailer in the UK, with 265 stores across the UK and Ireland. Homebase is wholly owned by Home Retail Group.
Wesfarmers highlighted the UK home improvement and garden market is an attractive and growing market and said the acquisition would be the first step towards building a Bunnings-branded business over three to five years.
Wesfarmers advised that an exclusivity agreement was signed in early December and confirmatory due diligence has now been completed, with transaction documentation in the process of being finalised.
Wesfarmers recorded a net profit of $2.44 billion at 30 June 2015.
