Australia’s biggest supermarket chain Woolworths Group announced on Wednesday, July 3, it will combine and spin off its drinks and pubs units to focus on its core business, cutting back its contentious involvement in poker-machine gambling.
The demerger would give investors exposure to a standalone listed operator of 1,500 liquor stores and 327 pubs worth about AU$10 billion (US$7 billion), according to analysts, while reducing family-focused Woolworths’ reliance on slot machine revenue.
It also marks the beginning of the end of the major retailers’ addiction to poker machine revenue, after Woolworths rival Coles Group announced in March it was carving off its pubs business into a joint venture.
“A significant proportion of the world’s funds under management that would invest in this stock is concerned about its ownership of hotels and poker machines,” said David walker, large companies portfolio manager at Clime Asset Management.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI