WESFARMERS Limited has made a conditional offer to acquire Britain’s DIY chain Homebase.

With 265 stores, Homebase is the second largest home improvement and garden retailer in the United Kingdom and Ireland.

The acquisition, which is pegged at $699 million, would see Wesfarmers rebrand the UK chain as Bunnings. This would take place across three to five years.

Discussions between the companies began in September.

Homebase is owned by Home Retail Group which is listed on the London Stock Exchange.