Australian retail group Wesfarmers has agreed to buy Homebase from Home Retail Group for £340m.
Wesfarmers already owns Bunnings, one of Australia’s largest suppliers of outdoor living and DIY products.
The deal would see the retailer take control of 265 Homebase stores in the UK.
John Coombe, chairman of Home Retail Group, said: “Wesfarmers is an experienced and successful retailer with exciting plans to invest in and grow its presence in the UK through Homebase.
“This transaction crystallises value for our shareholders from our ownership of Homebase and specifically the work that we have been doing through the productivity plan.
“Following completion of this transaction, the board will remain focused on the continuing transformation of our Argos business and the options for delivering shareholder value, supported by a strong overall financial position.”
The transaction is expected to close at the end of March.
Merrill Lynch International, a subsidiary of Bank of America Corporation, is acting for Home Retail Group.
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