Builders merchant Travis Perkins can takeover rival merchant chain BSS, the Office of Fair Trading has decided.
Although the £533m deal will be subject to certain conditions, the OFT statement says that it “considers that arrangements are in progress or contemplation which, if carried into effect, will result in the creation of a relevant merger situation.”
Travis Perkins has agreed to sell branches in 20 areas identified by the OFT as having serious store overlap.
“The OFT considers that the proposed undertakings offered by TP are clear cut and appropriate to remedy, mitigate or prevent the competition concerns identified in the decision,” said the OFT in a statement.
However, the final decision is still dependent upon public consultation. The deadline for comments is 26 November.
The merger will create the UK’s biggest builders and plmbers merchant chain.