Under the terms of this agreement, Woolworths and Lowe's will work together to share best practice and create a leading home improvement business in Australia.
As part of this arrangement, Lowe's will own a one-third share of the new home improvement business and will contribute capital accordingly.

Offer for Danks Holdings
As part of the venture, Woolworths and Lowe's have made an offer for Danks Holdings, Australia's second-largest hardware distributor.
The joint venture has offered $13.50 per share (representing total equity consideration of $87.6 million), plus approved final Danks declared dividend of $0.53 per share to acquire all the ordinary shares of the company.
According to the statement: "Danks is a successful distributor to more than 1,500 independent retailers, of whom 583 are branded either Home Timber & Hardware (205), Thrifty Link (312) or Plants Plus Garden Centres (66)."

Acquisition of greenfield sites
Woolworths has also announced the development of a network of destination home improvement stores with a target to secure more than 150 store sites within the next five years.
The company has secured entitlement to 12 sites and is currently in final negotiations to secure a further 15 sites for greenfield development nationally for potential destination home improvement stores of more than 10,000-square metres.
Woolworths expects to open its first destination home improvement store in late 2011.

For further information on the consulting and joint venture agreement with Lowe's, please refer to the Lowe's nyse release