Investors will be on the lookout for further takeover bids for Mitre 10 after grocery wholesaler and distributor Metcash Ltd made a formal proposal for the independent hardware chain on Friday.
Metcash proposed to buy 50.1% of the Mitre 10 Group initially, with the potential to acquire 100% in either 2012 or 2013.
Mitre 10 chief executive Mark Burrowes said talks with Metcash and other interested parties were initiated by Mitre 10 as part of the group's "transformation programme".
He said on Friday he was expecting a number of formal proposals by close of business.
But the hardware chain later said it was going to make a statement about further bids on Monday.
The move by Metcash comes after its rival Woolworths got the green light from the competition regulator to mount a joint takeover of hardware retailer Danks Holdings Ltd to take on Wesfarmers' Bunnings in the hardware market.
Woolworths earlier this month received Australian Competition and Consumer Commission approval for its multi-billion-dollar joint bid with the US home-improvement chain Lowes for hardware chain Danks.
Metcash, which is the supplier to Australia's independent supermarkets, including the IGA and Foodworks, had strongly opposed Woolworths' entry in the hardware sector, saying it would reduce competition.
Metcash chief executive Andrew Reitzer said recent developments in the hardware sector had changed the landscape and outlook for independent operators.
Metcash said by acquiring the Mitre Group it hopes become "the champion" of independent hardware retailers.
Mitre 10 in Australia is separate from Mitre 10 in New Zealand which is run as a co-operative.
