SYDNEY, Aug 11 (Reuters) - Australia's competition watchdog said on Thursday it will not oppose electronic retailer JB Hi-Fi Ltd's JBH.AX proposed acquisition of rival Good Guys, saying the two companies are focussed on different product categories and customers.
JB Hi-Fi is considering a buyout of the appliances chain as it looks to diversify away from its traditional line-up of DVDs and video games. Local media have said the deal could be worth A$1 billion ($771 million) Australian Competition & Consumer Commission (ACCC) found that "post-acquisition, customers would have a range of alternative retailers of home appliances and consumer electronics."
"On balance, the ACCC did not consider that the acquisition would substantially lessen competition in any market."
JB already plans to grow its network of HOME appliance stores to 75 by the end of fiscal 2017, from none five years earlier.
An acquisition of The Good Guys would widen its exposure to the household goods sector, which has posted strong recent earnings growth following a housing boom in Sydney and Melbourne.
($1 = 1.2963 Australian dollars)