Woolworths braces for legal action as Lowe’s books $US530m Masters write-down

 In Australia, Hardware, NewZealand, Woolworths
US retailer Lowe’s has set the scene for legal action against Woolworths after writing down the value of its 33 per cent stake in the companies’ home improvement joint venture by $US530 million ($737 million).
Lowe’s booked a $US530 million charge against its investment in the Masters and Home Timber and Hardware businesses overnight, sending net profits plunging to $US11 million from $US450 million.
Lowe’s net investment in the home improvement is about $US930 million ($A1.33 billion at current exchange rates), so the write-down represents more than 56 per cent of the book value of its investment.
Woolworths could book impairment charges of at least $1.3 billion if it writes down its 66 per cent stake by a similar margin. Sydney Morning Herald – Read more…

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