Wesfarmers shares fall 4% as CEO eyes stressed-company deals
Wesfarmers' CEO says the conglomerate will target debt-stressed companies as interest rates rise.
Wesfarmers' chief executive Rob Scott told shareholders the company is searching for acquisition targets among struggling, highly-indebted businesses. When interest rates climb and the economy tightens, he said, those are often the best investment opportunities.
Wesfarmers' strong balance sheet and diversified portfolio position it to take advantage if conditions worsen. The company's shares fell more than 4 per cent on Thursday.
This followed the annual general meeting, which revealed Bunnings' sales have slowed in recent weeks. Scott said rising inflation, cost-of-living pressures, and interest rate rises caused the slowdown.
He warned against reading too much into a few weeks of trading. Wesfarmers' businesses have performed well in difficult conditions before.
Ken MacKenzie took over as chair from Michael Chaney at the meeting.
- More than 4 per cent
- Share price fall
- About 1400 shareholders and guests
- AGM attendance
- Rob Scott
- CEO
Why it mattersThis signals Wesfarmers expects tougher economic conditions ahead and is positioning to buy competitors at discounted prices.
AustraliaWesfarmers' moves shape the structure of Australian retail and commerce, and any downturn affecting the company's forecasts signals broader economic strain for consumers and businesses.
✓ Claims checked against the source. checked 3 h ago
