Woolworths to acquire 80% stake in MyDeal

Australian retailer Woolworths have proposed to acquire an 80% stake in MyDeal showing their ambitions to compete with other Australian marketplaces.

The MyDeal team is excited by the opportunity to partner with Woolworths Group. It will help support the growth of our retail platform by accessing Woolworths Group’s capabilities across eCommerce, supply chain, retail, loyalty and more.

– MyDeal Founder and CEO, Sean Senvirtne

The announcement of an $243 million offer was made to the shareholders of both companies on Friday. The acquisition will enhance marketplace capabilities, particularly in furniture, homewares and other bulky goods. Woolworths first launched their marketplace ‘Everyday Market’ in 2021. The additional capabilities will complement BIG W’s existing general merchandise offer and is consistent with their Group’s strategy to ‘Connect our customers with Good Food and More Everyday’. For MyDeal, access to Woolworths Group’s platforms and capabilities will support its continued growth.

The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.

– Woolworths Group CEO, Brad Banducci

Despite both companies showing excitement towards the acquisition, market analysts are not convinced that it will prove entirely beneficial. It is difficult to predict whether the deal will be good for MyDeal (No pun intended) who struggled during the Pandemic.

The Transaction is expected to be implemented in Q4 2022. As the Transaction is subject to regulatory approvals, including approval by the ACCC.

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