Category Archives: headline

headline

Bunnings completes Beaumont Tiles acquisition

Hardware juggernaut Bunnings has completed its acquisition of Beaumont Tiles after Australia's competition watchdog ruled it would not stand in the way of the purchase.

In late September this year the Australian Competition and Consumer Commission (ACCC) said it would not oppose the acquisition on the grounds that Bunnings is not already a strong competitor in the tile sector.

Today the acquisition was finalised, with the DIY retail giant confirming that Beaumont Tiles will continue to be run as a "separate and distinct" business to Bunnings stores.

LIVE UPDATES: Verry Elleegant wins Melbourne Cup | Where every horse finished

Several new exposure sites in the greater Darwin region including a BWS bottle shop, Bunnings Warehouse and highway restaurant.

"Beaumont Tiles is a trusted Australian business with a great team and a proud 61-year history, and we're really pleased to have completed the transaction today," said Bunnings Group Managing Director Michael Schneider.

"The acquisition will help us better cater to the needs of our builder and flooring trade customers who will benefit from Beaumont Tiles' specialist design knowledge and extensive hard surfaces range.

"Beaumont Tiles has a strong management team in place and will continue to be run as a separate and distinct business and we're looking forward to investing in the company's future growth."

READ MORE: Disneyland Shanghai goes into snap COVID-19 lockdown

As part of its ruling the ACCC said Bunnings was not a strong competitor in the tile sector prior to the acquisition.

"At first glance, Bunnings taking over a major tile retailer appears concerning, but our investigation found that Bunnings is not a strong competitor in tile sales. This is not a case of a close competitor buying up its rival," ACCC Chair Rod Sims said.

"However, the ACCC's decision not to oppose this deal is based on the specific circumstances and should not be read as any indication that the ACCC will reach the same conclusion in relation to future possible acquisitions by Bunnings."

Mr Sims the watchdog would be "very carefully" considering any further acquisitions by Bunnings, but in this case found that most tile retailers compete with each other rather than big-box DIY chains such as Bunnings.

READ MORE: Leaked text message in spat between French PM and Morrison

"Specialist tile retailers have a far more extensive range, displayed in dedicated tile showrooms with specialist staff who can provide design and product advice to customers and referrals to tilers. Specialists also have stronger relationships with larger builders, and usually deliver tiles direct to work sites," Mr Sims said.

"By contrast, Bunnings generally sells small volumes of tiles in-store to Do-It-Yourself customers, and tilers and other tradespeople undertaking small jobs."

Despite the acquisition being unopposed by regulators, not all in the market are pleased with Bunnings' foray into specialist tiling.

READ MORE: Sydney residents fighting fears of Bunnings traffic congestion

Other tile retailers told the ACCC that they were concerned a combined Bunnings-Beaumont Tiles would come to dominate tiling retailing.

Ultimately, the ACCC found that these concerns were not likely to eventuate because of the "diverse" customer base for tiles in Australia.

"There is little doubt that the proposed acquisition will allow Bunnings to compete strongly with specialist tile retailers, particularly in supplying larger builders who Bunnings has struggled to attract to date," Mr Sims said.

"Stronger competition may pose challenges for some tile retailers, but it is unlikely to lead to a substantial lessening of competition in this market."

READ MORE: Thousands of Queenslanders get COVID-19 vaccine at Bunnings

Bunnings entered an agreement to acquire Beaumont Tiles in late April 2021.