Australia's Woolworths offers to buy majority stake in MyDeal.com
(Reuters) -
The
The proposed buyout of MyDeal, one of
"The scheme is an attractive transaction, which provides an all-cash option for MyDeal shareholders" MyDeal Chairman
Almost 60% of the shares being sold to Woolworths will be from MyDeal's Chief Executive Officer
Analysts at Barrenjoey said in a note that the acquisition looks to be a tacit acknowledgement that Woolworths's marketplace isn't gaining traction.
"Woolworths has struggled to generate returns in non-food businesses, so we question why they would allocate capital like this."
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(Reporting by Navya Mittal in Bengaluru; editing by Uttaresh.V)