Mitre 10 shareholders say yes to Metcash

Shareholders in hardware firm Mitre 10 Group have voted in favour of grocery wholesaler Metcash Ltd taking a 50.1 per cent stake in Mitre 10 for $55 million.

Metcash and Mitre 10 announced on Friday that 98 per cent of Mitre 10 shareholders at meetings on Friday had voted in favour of schemes of arrangement facilitating the takeover.

The deal still requires court approval.

Completion of the deal is expected by March 31, 2010.

"We are pleased that the Mitre 10 shareholders, the majority of whom are store-owners, have voted so strongly in favour of this transaction," Metcash chief executive Andrew Reitzer said.

Mr Reitzer said the Mitre 10 Group would remain a focused wholesaler and not compete with its customers through the operation of retail stores.

"Metcash's involvement in the Mitre 10 Group will make it a stronger and better capitalised independent hardware wholesaler, capable of supporting Mitre 10 store owners to compete more effectively in the face of increased competition in the home improvement industry," Mr Reitzer said.

Metcash will have the right to acquire the remaining 49.9 per cent of the equity in the Mitre 10 Group after the finalisation of Mitre 10's audited accounts in either 2012 or 2013.

Shares in Metcash were one cent higher at $4.08 at 1544 AEDT on Friday.