The ACCC has stated it won’t oppose JB Hi-Fi’s proposed acquisition of the Good Guys Discount Warehouses and the Muir Finance company.
In May, JB Hi-Fi confirmed it was in discussions with the retail chain.
The consumer watchdog based it decision on extensive market feedback and other industry information that both retailers generally focused on different product categories and customers, and post-acquisition, customers would have a range of alternative retailers of home appliances and consumer electronics.
“JB Hi-Fi has traditionally focused on selling consumer electronics with stores mostly located in shopping centres or CBDs. On the other hand, the Good Guys has mostly focused on whitegoods and other home appliances, with stores generally located in home centres or similar locations. Other retailers such as Harvey Norman, have a much higher degree of overlap with the Good Guys than JB Hi-Fi,” ACCC chairman, Rod Sims, said.
But to a certain degree, the retailers are in competition with each other in certain high-value consumer electronics and home appliance categories such as televisions.
“On balance, the ACCC did not consider that the acquisition would substantially lessen competition in any market,” Sims said. “We considered the combined company would continue to face strong competition from Harvey Norman and other retailers such as Betta, Retravision, Bing Lee and Radio Rentals.”