4th Jan 2022 14:37
(Alliance News) - The UK Competition & Markets Authority on Tuesday said it has served an initial enforcement order over the sale of Grafton Group PLC's traditional merchanting business for GBP520 million to builders merchants Huws Gray.
In July 2021, the Dublin-based DIY retailer first announced the sale of its unit, including the group's Buildbase, the Timber Group and NDI brands, and earlier Tuesday reported the completion of the transaction with effect at the end of 2021.
In October, however, the UK regulator started to investigate whether the sale would lead to a substantial lessening of competition, and in November, the CMA concluded that it would refer the deal to a phase two investigation unless undertakings were offered.
In December, Huws Gray had put forward undertakings to the CMA, including the sale of Buildbase Sudbury, which the regulator has until February 10 to accept or decline, in order to allow the deal to go through. This deadline can be extended however to April 7 if special reasons arise for doing so.
Shares in Grafton were up 2.2% at 1,260.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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