Woolworths can sell its Masters sites

May 2, 2017 by  

Arbitration means that supermarket Woolworths has the capacity to offload its Masters property.

The decision was originally made on a confidential basis. Woolworths does not have to consider what its former partner wants to do, and regardless of the wishes of Lowe’s, Woolworths can dispose of assets under the Masters label, several of which are located within Western Australia.

The Wangara outlet will accommodate a fresh Bunnings store, meaning printing services within Wangara might be used to showcase the new shop.

Woolworths released a statement to the press, saying:

"As a consequence of today’s award, Woolworths will be able to conclude the proposed transaction with Home Consortium without the consent of Lowe’s, once the final valuation and share transfer processes have taken place.”

Woolworths shut its Masters outlets in 2016 because the Australian hardware market was not proving to be a particularly lucrative one. Shares in Woolworths edged upwards on the news that the organisation could sever its Masters ties.

Woolworths should obtain about $835m from the disposal of its stores. This return could balance the loss of approximately 20 development sites and around 60 stores.

As a result of the thinking of an independent expert, Lowe’s was obliged to sell its share of the joint enterprise at a value not of its own choosing. The American retailer had launched action to prevent this outcome.