The transaction was reviewed by the ACCC since November last year and the organisation has determined that it was unlikely to result in a "substantial lessening of competition in any relevant market".

The ACCC referred to Home Hardware's close proximity to Bunnings Warehouse in Braemar as an example of competition in the area.

"Consumers in the Mittagong area could also switch to buying certain categories of hardware products from several specialty suppliers in the local market," the ACCC report said.

Woolworths and Lowe's Companies, through Blue Mountains Hardware Pty Ltd (the Joint Venture), proposed to acquire all interests and assets associated with Mittagong Home Hardware and Home Mittagong Timber and Trade (together, Mittagong Home).

Woolworths also owned Bowral hardware store Magnet Mart, but recently announced it would close it at the end of this month.

Twenty-seven employees would be out of work as a result of the closure.

Bowral Toolbox manager Paul Templeton said it was sad that any business had to close, but he did not expect it to effect his store.

"You can see the logic in what Woolies has done and it doesn't bother me that there is another big boy coming to town. I just think it is sad that somebody closes what has been in place for so long," he said.

"We've evolved into having more machinery now so the effect on us is not going to be great.

"People have to understand that biggest is not always cheapest."

There has been a hardware store on the Magnet Mart site for more than 50 years and it is not yet known what will replace Magnet Mart.

Meanwhile, the Goulburn Post has reported that Magnet Mart in Goulburn will continue with plans to undergo a major re-development to counteract competition from a new $23 million Bunnings store.

The project has caused some controversy in the town because it involves the demolition of heritage-listed Victorian terraces.

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