Home Retail Group sells Homebase to Wesfarmers

Home Retail Group has sold its Homebase chain of DIY stores to Australia-based Wesfarmers for £340m. Sources report that the 265 UK Homebase sites will be rebranded as Bunnings stores over the next three to five years. Bunnings is the Australian chain of DIY stores which Wesfarmers already owns.

The deal is still subject to the approval of the Home Retail Group shareholders. If they give the go-ahead it could be wrapped up in the first quarter.

Homebase was founded more than 30 years ago by the UK supermarket Sainsbury’s – which has been mounting its own bid for the Home Retail Group operation.  It is understood that Sainsbury’s bid for the Home Retail Group was sparked primarily by its interest in the group’s other key subsidiary, Argos. Now Homebase has gone to Wesfarmers, Sainsbury’s is likely to continue its pursue of Argos.