Get the app today! Download iPhone App Download Android App

Wesfarmers Breaks Buffett Playbook With $20 Billion Spinoff: Gadfly

Published on Mar 17 2018 8:00 AM in Retail tagged: Trending Posts / coles / Westfarmers / Australian Retail / Paywall

Wesfarmers Breaks Buffett Playbook With $20 Billion Spinoff: Gadfly

In its pomp, Australia's Wesfarmers liked to think of itself as a sort of antipodean Berkshire Hathaway: buying undervalued, cash-producing businesses and letting skilled managers run them with clear targets to generate strong returns on invested capital.

So much for that. While Warren Buffett hardly ever bids farewell to a business,  Wesfarmers on Friday unveiled plans to spin off its Coles supermarket chain in a move that would create a $20 billion company and reverse one of the country's biggest-ever takeover deals.

While Managing Director Rob Scott told reporters the move was part of his pitch for the top job he assumed in November, to outsiders it came out of the blue.

please subscribe or sign in to continue reading

image description

Try European Supermarket Magazine PREMIUM – 30 Day FREE Trial.

A trial subscription gives unrestricted access to all premium site content, app content, weekly email content and European Supermarket Magazine digital edition for a full 30 days. Try it now!

Share on Facebook Share on Twitter Share on Google+ Share on LinkedIn Share on Tumblr Share via Email