Woolworths and its US joint venture partner Lowe’s are expected to appoint independent experts this week to value the loss-making Masters chain after failing to agree on price.
Woolworths and Lowe’s had until Monday to agree on the price that Woolworths would pay Lowe’s for its 33.3 percent stake in their home improvement venture in after the US retailer exercised its put option last week, prompting Woolworths to pull the plug on its six-year foray into home improvement.
The venture featured both Masters and the profitable Danks/Home Timber and Hardware business. The pair has failed to reach agreement on the value of the stake within the five business days set out in the put option process and must now obtain independent expert valuations within 15 business days. If they still fail to agree on a price after a further five days of negotiations, a third independent expert will be called to adjudicate, based on the first two valuations.