Bunnings moves to expand to UK

PERTH, Australia — Wesfarmers, parent of retail giant Bunnings, is investing $700 million to acquire the UK’s Homebase from Home Retail, which also owns Argos. If the offer is accepted, the 265 Homebase stores in Britain and Ireland would be rebranded under the Bunnings banner. Wesfarmers acknowledged it has signed an exclusivity agreement after details were leaked in the press. The pressure on the conglomerate will be high if it launches in the UK, where the DIY market is more competitive than in Australia. Masters Home Improvement, the troubled joint venture between Lowe’s and Woolworth’s in Australia, is an example of the potential pitfalls of trying to translate home improvement success from one market to another.