David Jones says Woolworths takeover clears foreign investment hurdle

SYDNEY Mon May 5, 2014 8:40pm EDT

A customer walks past signage for a David Jones store in central Sydney June 30, 2009. REUTERS/Daniel Munoz

A customer walks past signage for a David Jones store in central Sydney June 30, 2009.

Credit: Reuters/Daniel Munoz

Related Topics

SYDNEY (Reuters) - David Jones Ltd said a takeover proposal from South Africa's Woolworths Holdings Ltd has been approved by Australia's foreign investment review body, clearing a hurdle for the creation of a southern hemisphere retailing giant.

Woolworths WHLH.J, which has no relation to Australian supermarket chain Woolworths Ltd (WOW.AX), offered to buy up-market retailer David Jones a month ago for $2 billion after trumping a bid from Myer Holdings Ltd (MYR.AX).

David Jones said in a statement that Australia's Foreign Investment Review Board had no objection to the takeover proposal. The FIRB does not issue public statements on its decisions.

The David Jones board continues to unanimously recommend the proposal to shareholders.

David Jones also said on Tuesday that its total sales in the third quarter rose 4.1 percent to A$407.2 million ($377.47 million), with comparable sales up 2.4 percent.

David Jones shares edged up 0.3 percent to A$3.96 as of 0028 GMT, compared with a 0.4 percent gain for the broader market.

(Reporting by Maggie Lu Yueyang; Editing by Stephen Coates)

FILED UNDER: