Deals
Woolworths, Lowe's Exit Unprofitable Home Improvements Unit
- Lowe's is exercising right to force Woolworths to buy stake
- Woolworths stock surges as much as 7.9 percent in Sydney
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Woolworths Ltd. and Lowe’s Cos are exiting their unprofitable Australian home-improvements venture after a failed six-year attempt to take on market leader Bunnings Ltd.
U.S. hardware chain Lowe’s, which owns 33 percent of the venture, is exercising its right to force Woolworths to buy the stake. Woolworths will then sell or close the unit, which had net assets of A$2.8 billion ($1.9 billion) and was losing around A$200 million a year, the Australian company said Monday.