Trailer Magazine

ACCC approves Wesfarmers’ proposed acquisition of Catch

  • Posted on Monday 5th, August 2019.

The Australian Competition & Consumer Commission (ACCC) has decided not to oppose the proposed acquisition of online retailer Catch Group by Wesfarmers.

Wesfarmers, through its Kmart and Target stores, and Catch both retail a variety of products to consumers, ranging from clothing and general merchandise to homewares and electronics.

Catch offers out-of-season, clearance or overrun branded products, as well as operating a growing online marketplace through which third-party sellers supply products.

The ACCC’s review of the proposed acquisition examined both physical and online retail competition, as well as whether there would be any potential impact on third-party marketplace sellers.

“We reviewed whether Wesfarmers’ retail position could be leveraged into online sales and marketplaces in an anti-competitive way,” said ACCC Commissioner, Stephen Ridgeway.

“The current growth in online marketplaces is fostering competition between providers, and feedback indicated that Wesfarmers’ proposed acquisition of Catch would be unlikely to change that level of competition.

“Stakeholders also consistently told us that Catch and Wesfarmers are not close competitors, primarily due to the differences in their business models,” he said.

Last month, Wesfarmers agreed to acquire Australian online retailer, Catch Group Holdings, for cash consideration of $230 million.

(Image: Wesfarmers Managing Director, Rob Scott.)

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