The Bookseller.com

20th November 2008

« Headlines

A&R pulls out of Borders purchase

12.03.08 Philip Jones

Angus & Robertson Whitcoulls (ARW) has pulled out of negotiations with Borders on a deal to acquire its Australian and New Zealand stores after the parties were unable to agree terms. ARW said: "As a result, it is unlikely that a transaction between the two companies will proceed."

ARW said that it remained open to considering a 100% acquisition of the Borders ANZ Assets. The group added: "A&R Whitcoulls is disappointed that the parties involved were unable to reach a mutually acceptable agreement. However, following a sale process that has spanned almost a year, the A&R Whitcoulls Board is comfortable that negotiations have reached a natural conclusion."

The companies had been working towards a part-cash part-scrip merger that would have seen Borders Group Inc take a substantial stake in A&R Whitcoulls and retain exposure to the local book market and the Borders ANZ assets.

Both the purchase of Borders' Australian and New Zealand stores by A&R--the dominant retailer in both markets--had been cleared by the respective competition authorities.

Borders did not comment.

International Philip Jones Borders Australia Angus & Robertson Whitcoulls A&R