Home Retail in Talks to Sell Homebase to Wesfarmers
January 13 2016 - 2:15PM
Dow Jones News
By Rory Gallivan
LONDON--The U.K.'s Home Retail Group PLC (HOME.LN) is in
advanced talks about selling its home-products store chain Homebase
to Australian diversified retailer Wesfarmers Ltd. (WES.AU) for 340
million pounds ($492.5 million).
The two companies are "currently finalising transaction
documentation," though "discussions are ongoing and there can be no
certainty that a transaction will be agreed," Home Retail said on
Wednesday.
The announcement comes the week after Home Retail said it
rejected an offer for its other division Argos, which sells TVs,
furniture and other products, to the supermarket group J Sainsbury
PLC (SBRY.LN).
Selling Homebase, which sells DIY products, furniture and other
home products, would allow Home Retail Group "to focus on Argos and
its Transformation Plan, with an improved balance sheet and
financial position," said Home Retail Chief Executive John
Walden.
Wesfarmers operates retail brands in Australia including
clothing and homewares retailer Target and supermarket chain
Coles.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
January 13, 2016 14:00 ET (19:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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