Woolworths acquires Australia's David Jones
David Jones is a major department store in Australia. According to a report from Ventures Africa, the department center was purchased by South African food and clothing retailer, Woolworths. The report continued saying that the deal between David Jones and Woolworths was valued USD2 billion.
The acquisition of David Jones was a move seen for Woolworths expanding its arms worldwide. In a statement issued Wednesday, Woolworths said,
“The…acquisition is aligned to this strategy, enabling the enlarged group to create significant efficiencies and economies of scale that will over time deliver a material improvement in profitability.”
The planned deal would be finance through existing cash and new debt, reported Ventures Africa. The acquisition is still pending approvals from regulatory officials. Once all the requirements are met, David Jones would become a subsidiary of Woolworths. David Jones will be de-listed from the Australian Securities Exchange, reported Ventures Africa.
Woolworths has operations in Australia through business arms operating with 460 chains.