Business
Frasers moves to buy remaining Accent Group shares in A$390.8M offer
Frasers Group has launched a A$390.8 million offer to acquire the remaining shares of Accent Group, extending its investment in Australia's retail sector. The proposal follows an existing partnership between the companies and comes as retailers navigate mixed consumer spending conditions across Australia and New Zealand.
British retail giant Frasers Group launched a A$390.8 million ($276 million) bid for remaining shares of Australian footwear and apparel retailer Accent Group, further extending its interests into Australian and New Zealand retail.
The offer values Accent at $0.65 per share, its closing share price prior to the announcement. Accent has confirmed it has received the offer and urged shareholders not to take action pending board consideration.
Investors reacted positively to the news, lifting Accent shares by more than 9% in early trading June 15 and taking its market valuation to close to that implied by the deal.
Existing Partnership becomes Key
The bid follows an expansionary partnership between the two firms over the past few years, with Frasers already being Accent's largest shareholder and having partnered to develop the Sports Direct brand across Australia and New Zealand.
The partnership has become an integral aspect of Frasers' international strategy andfull ownershipof Accent would grant the UK retailer direct control over the Australian company operating more than 900 retail outlets and controlling a stable of footwear, sporting and lifestyle brands.
The retailer, which is backed by British businessman Mike Ashley, has actively sought to increase its exposure outside of the UK via investments, acquisitions and partnerships.
Retail Sector faces Patchy Trading
The offer arrives in the midst of volatile retail trading conditions and mounting household expenses, yet large retail groups are still a target for foreign investment given their exposure to Australian consumer spending which is relatively resilient.
Accent had revenue in FY2025 of $1.6 billion, while net profit after tax for the year was $57.7 million. Revenue increased by 2.4% to $865 million, and profit after tax decreased by 40.5% to $28.1 million in the first half of FY2026.
The offer follows several months of negotiations between the two firms concerning a possible transaction, with Accent yet to determine whether or not it supports the deal, which it states it will continue to review.
For Australian retailers, the bid further reinforces a global desire from international interests for their local assets and for the American investor and retailer, it illustrates the current consolidation occurring in the established retail market amid a trying consumer market.
Resource: Reuters
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