The Australian Competition and Consumer Commission has revealed that it is looking to outright reject GUD Holdings' proposed $267 Million hostile acquisition bid of arch rival Breville Group, the kitchen appliance supplier.

The decision has come after the regulator's rejection of Caltex Australia's attempted takeover of Exxon Mobil's gasoline filling stations, further proving that the regulator is taking a harsh stance against "perceived competitive threats in Australia's retail sector".

"The ACCC's investigation found that the proposed acquisition of Breville Group by GUD Holdings would likely lead to a substantial lessening of competition in relation to the wholesale supply of a number of categories of small electrical appliances", said ACCC chairman Graeme Samuel.

According to ACCC, GUD and Breville are "by far" the two major players in the small Australian appliance market.

"Between them they account for the majority of sales of many product categories and for some products they have a dominant sales share in excess of 90 per cent", chairman Samuel said.