AUSTRALIA: ACCC Approves JB Hi-Fi Bid For The Good Guys

The JB Hi-Fi chain has received regulatory approval to bid for peer chain The Good Guys (TGG), although no decision on the deal has yet been made.

Acquiring TGG would significantly expand JB’s presence in the Australian consumer electronics and whitegoods retail market, pushing its combined sales to nearly A$6bn (from A$3.9bn currently), and adding 100 stores to its existing 90 outlets.

Rod Sims, Chairman of the Australian Competition and Consumer Commission, said the proposed deal would not reduce overall competition in the market.  He said the two chains were focused on different product categories and customers, adding: “Other retailers such as Harvey Norman have a much higher degree of overlap with The Good Guys than JB Hi-Fi”.

Sims also noted that the regulator believes a combined entity “would continue to face strong competition from Harvey Norman and other existing retailers such as Betta, Retravision, Bing Lee and Radio Rentals.”

No deal has yet been announced, and JB Hi-Fi said it “continues to participate in the sale process”.  It is being reported that TGG is still evaluating its options, including that of a public listing.