Metcash bids for controlling stake in Mitre 10

Metcash bids for controlling stake in Mitre 10

Retail company Metcash (ASX:MTS) has submitted a conditional proposal to acquire a controlling interest in the Mitre 10 hardware chain.

The proposal, the financial terms of which have not been disclosed, would also offer Metcash the potential to acquire the majority of the company in 2012 or 2013.

“Recent developments in the hardware sector have materially changed the landscape and outlook for independent operators,” Metcash CEO Andrew Reitzer said.

“Based on our experience and success in the competitive food and liquor sector, a Metcash backed Mitre 10 wholesaler will enable its retail customers to compete more effectively in an increasingly competitive marketplace.”

Metcash would own a 50.1% stake in Mitre 10 if the offer is accepted.

Mitre 10 is today acknowledged the proposal, which it said was reached after several months of negotiations between the parties.

But the company added it was expecting “a number” of additional acquisition offers, which it will consider thoroughly before making a decision.

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Tags retailMergers and acquisitionsMetcashMitre 10

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