Home-improvement retailer Kingfisher (KGF) is in acquisition talks with French rival, Mr Bricolage, in a deal worth €275m (£226m) that could see the DIY giant tighten its grip on the European market.
Mr Bricolage is the third-largest DIY retailer in France, after Kingfisher itself and Leroy Merlin, with reported sales of €552m in the year to December 2013. The deal is subject to clearance from the French authorities, which could take a year to materialise. If it does get the green light, however, Mr Bricolage would boost Kingfisher's earnings by at least 2 per cent by the end of the 2016 financial year.
The company operates 516 stores in France, with a further 69 abroad. Whereas Kingfisher's Castomara and Brico Dépôt brands are primarily located out of town, Mr Bricolage tends to operates in City centres.
