14th Jan 2022 09:24
(Alliance News) - The UK Competition & Markets Authority on Friday has accepted undertakings from Patagonia Bidco Ltd, the owner of builders merchants Huws Gray, to gain clearance for its acquisition of Grafton Group PLC's traditional merchanting business.
Dublin-based DIY retailer Grafton first announced the GBP520 million sale of the business, which includes the Buildbase, Timber Group and NDI brands, in July last year.
On Tuesday last week, it completed the transaction. However, on the same day, the UK regulator served an initial enforcement order, following an investigation into whether the deal would lead to a substantial lessening of competition. Back in November, the CMA had said that it would refer the deal to a phase two investigation unless undertakings were offered.
In December, Huws Gray put forward undertakings to the CMA, including the sale of Buildbase Sudbury, which the regulator has now accepted.
As a result, the deal will not be referred to phase two, and the undertakings proposed by Huws Gray will come into effect immediately.
Shares in Grafton were down 0.2% at 1,202.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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