Wesfarmers hits Homebase

On Thursday, Wesfarmers (ASX: WES) announced an offer to acquire United Kingdom DIY retail chain Homebase from Home Retail Group for £340 million (A$700 million). The company plans to rebrand the Homebase chain of 265 stores across Britain and Ireland as Bunnings. Wesfarmers said the British home improvement and gardening business was “an attractive and growing market’’. The acquisition is the first offshore by Wesfarmers. Shares in Wesfarmers closed down 0.8% for the week. We do not own Wesfarmers in the investment portfolio.