Woolworths Limited
(ASX:WOW) has had its proposed acquisition of an independent Victorian hardware store chain opposed by the Australian Competition and Consumer Commission.
The ACCC concluded that the Woolworths acquisition of the G Gay and Co chain in Ballarat would result in a substantial diminishing of competition in the area.
The commission said that the three G Gay and Co stores are a vigorous and effective competitor in terms of price, product range and service, and are likely to provide strong competitive constraint.
The proposed purchase of the chain is by Woolworths and US joint venture partner Lowes, who together plan to establish up to 150 Masters hardware stores nationwide.
Woolworths achieved a full year net profit of $1.82 billion for fiscal 2012.
