TP/BSS: not there just yet.
OFT puts Travis Perkins merger on hold
Published: 27 September, 2010
NORTHAMPTON: Travis Perkins's £558m takeover of rival builders' merchants BSS has been delayed…
by at least a month as the Office of Fair Trading scrutinises the deal more thoroughly. On Friday, the OFT extended the deadline for the examination of the deal to 19 October.
Travis Perkins' management team had hoped to formally start the merger under a scheme of arrangement, which involves the courts, on 22 October. However, this was dependent on approval by the original timetable.
It is widely expected that the Office of Fair Trading will grant approval, though the new group could be asked to sell around 10 branches, out of a combined total of about 1700, to ensure competition in certain areas.
Bankers involved in the deal have been surprised by the detail the OFT has demanded according to the Independent on Sunday newspaper. New court dates will have to be organised, which will take some time.