The Office of Fair Trading has agreed that builders merchant Travis Perkins can sell off 20 branches in order for its takeover of rival merchant BSS Group to go ahead.
Travis Perkins made the undertakings to sell Plumbing Trade Supplies or City Plumbing Supplies stores in 20 local areas across the UK to resolve OFT competition concerns raised by its merger with the BSS Group plc.
During the investigation into the merger, the OFT decided that it could not dismiss competition concerns in the 20 local areas and, as a result, Travis Perkins offered to sell some locations in order to avoid the merger being referred to the Competition Commission.
The OFT believes that the proposed undertakings are appropriate to remedy the competition concerns identified in its decision of 26 October 2010 and has therefore accepted them.
Amelia Fletcher, Senior Director of Mergers for the OFT, said: “After a careful investigation, we concluded that this transaction raised competition concerns in 20 local areas. The remedies that we have accepted today, once fully implemented, should retain competition at the level that existed pre-merger, thereby protecting consumers in those local areas.”