Travis Perkins takeover still on amid store sell-off
Builders' merchant Travis Perkins has offered to sell 20 stores to ease competition concerns linked to its proposed takeover of Leicester-based plumbing supplies business BSS. The Northampton-based company says it now expects to complete the deal by December, subject to clearance.
The Office of Fair Trading (OFT) says it is now considering proposals by Travis Perkins to sell stores in 20 local areas where BSS or Travis overlap.
Travis Perkins unveiled a £558m takeover offer for BSS in July.
Amelia Fletcher, senior director of mergers for the OFT, said: "The OFT, as the first phase authority, applied a cautious approach to assessing the local impact of the proposed merger.
"We are considering Travis Perkins's offer of divestments in those local areas where the evidence before us, including the views of many local customers and competitors, did not dispel our concerns about the potential adverse impact of the merger on consumers."
Travis Perkins said in a statement: "Travis Perkins believes that these branches will be of interest to a number of eligible buyers and that their sale will not materially impact the strategic and financial attractiveness of the overall transaction."
Currently the two companies employ about 19,500 staff and operate from more than 1,600 sites.
