|
FACTS: The Office of Fair Trading (OFT) intends to review Travis Perkins's (TPK) recent acquisition of the remaining 70% of Toolstation.
|
|
ANALYSIS: TPK has said it "sees absolutely no basis for this notification". The transaction was announced on January 3rd. TPK acquired its initial stake in April 2008 and it was no surprise that the group decided to take full ownership. TPK's plan is that Toolstation will form part of the group's consumer division when the new reporting structure is presented with the 2011 results (February 27th).
|
|
DAVY VIEW: Judging by TPK's comments, management is confident that the deal will get the green light. Although Toolstation has grown rapidly to now operating from over 100 branches, it is still small in the context of a TPK business that has annualised revenues approaching £5bn.
|