Woolworths share price edges higher as shareholders green light MyDeal takeover

A man holding cup of coffee puts his thumb up and smiles while at laptop.

A man holding cup of coffee puts his thumb up and smiles while at laptop.The Woolworths Group Ltd (ASX: WOW) share price is edging higher on Tuesday.

In afternoon trade, the retail giant’s shares are up slightly to $37.10.

Why is the Woolworths share price edging higher?

While the Woolworths share price has been up and down all day, it was given a little lift by an announcement after lunch.

That announcement reveals that Mydeal.com Au Ltd (ASX: MYD) has completed its shareholder vote relating to being acquired by Woolworths.

According to the release, shareholders have voted overwhelmingly in favour of the $1.05 cash per share deal.

A total of 99.89% of the votes cast by scheme shareholders were in favour of the $243 million transaction, which will see Woolworths acquire an 80% stake. The remaining 20% will be retained by MyDeal’s founder and CEO, Sean Senvirtne, along with certain other key management shareholders.

With ACCC approval already granted, the deal now looks set to close successfully next week on 14 September before being implemented on 23 September.

Why is Woolworths acquiring MyDeal?

Woolworths hasn’t commented on the deal today, but has previously explained that it sees the acquisition as a way to enhance its marketplace capabilities. It said:

MyDeal will enhance Woolworths Group’s marketplace capabilities, particularly in furniture, homewares and other bulky goods. It will complement BIG W’s existing general merchandise offer and is consistent with Woolworths Group’s strategy to ‘Connect our customers with Good Food and More Everyday’. For MyDeal, access to Woolworths Group’s platforms and capabilities will support its continued growth.

Woolworths’ CEO, Brad Banducci, added:

The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.

The post Woolworths share price edges higher as shareholders green light MyDeal takeover appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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