Speculation has arisen that Woolworths may be encountering obstacles in its acquisition of Petspiration Group, as the competition regulator has suspended its timeline for a final decision on the matter.
This delay may force Woolworths to sell stores in order to gain approval. Industry insiders have suggested that the Australian Competition and Consumer Commission is examining prior deals completed by PETstock, which occurred prior to Woolworths’ purchase of a 55% stake.
The ACCC has requested information from industry players regarding the pet products and services competition landscape. While there is no indication that Woolworths will fail to complete the acquisition, it may be required to divest some of its stores to satisfy the regulator’s concerns.
Petspiration, which operates under a variety of retail banners, is the sector’s second-largest player behind Greencross, and it is highly unlikely that the ACCC would seek to unwind prior transactions.
For the latest retailer news and information, check out the IndiHub website or to speak to us on how we can help your business contact us.
