- The ACCC is not opposed of the MyDeal (MYD) takeover by Woolworths (WOW)
- Earlier this year, Woolworths agreed to buy an 80 per cent controlling interest in the online retail marketplace for $1.05 per share, valuing MyDeal at $271.8 million
- The consumer watchdog found that it was unlikely that Woolworths retail position could be leveraged into MyDeal’s online sales marketplace in anti-competitive way
- On the market, MYD shares are up 0.97 per cent to trade at $1.05 per share and WOW shares are steady at $38.02 at market close
The ACCC has not opposed the MyDeal (MYD) takeover by Woolworths (WOW).
Earlier this year, Woolworths agreed to buy an 80 per cent controlling interest in the online retail marketplace for $1.05 per share, valuing MyDeal at $271.8 million.
The two parties have entered into a binding scheme, which will see MyDeal de-list from the ASX.
“Following our review and feedback from market participants, we do not consider that
Everyday Market from Woolworths is a significant competitor to MyDeal or other online
marketplaces and consequently, this acquisition is unlikely to substantially lessen
competition,” ACCC Commissioner Liza Carver said.
The ACCC’s review also found that it was unlikely that Woolworths retail position could be leveraged into MyDeal’s online sales marketplace in anti-competitive way.
“Woolworths would continue to face significant competition from online marketplace
platforms available to third-party sellers,” Ms Carver said.
Woolworths, through its Big W stores and supermarkets, and MyDeal sell a variety of general merchandise products to consumers including furniture, health and beauty products, homewares and electronics.
In addition to retailing their own products the parties also operate online marketplaces which are used by third-party sellers to retail products online.
On the market, MYD shares were up 0.97 per cent to trade at $1.05 per share and WOW shares were steady at $38.02 at market close.