(Reuters) – Australia’s competition watchdog said on Thursday it will not oppose Woolworths’ acquisition of a 55% stake in specialty pet retailer Petstock Group.
The Australian Competition and Consumer Commission (ACCC), after a review of Woolworths’ stake purchase proposal for Petstock, had flagged in November that the pet retailer’s acquisitions between 2017 and 2022 raised significant competition concerns.
The regulator had said the acquisitions, including Best Friends Pets, Pet City, Animal Tuckerbox and Pet and Aquarium Warehouse in Eltham, Victoria, could have breached the competition act.
The ACCC said on Thursday it had ordered Petstock to divest a package of sites and assets, including 41 retail stores.
“We consider Woolworths’ proposed acquisition of a 55 per cent interest in Petstock is unlikely to substantially lessen competition,” ACCC Chair Gina Cass-Gottlieb said.
Woolworths said Petstock’s divestiture will lead to an adjustment to the previously disclosed offer price of A$586 million ($390.51 million), to about A$438 million.
Petstock did not immediately respond to Reuters’ request for a comment.
($1 = 1.5006 Australian dollars)
(Reporting by Archishma Iyer in Bengaluru; Editing by Shinjini Ganguli)
