Kingfisher’s acquisition of Mr Bricolage has suffered a setback after the retailer’s management and a major shareholder said they had “reservations”.
Kingfisher, which makes more than half its profits in France through its Castorama and Brico Depot brands, said: “Kingfisher has been made aware that both the majority of theboard of Mr Bricolage and the ANPF, a major shareholder of Mr Bricolage, have reservations in relation to the transaction but has yet to receive clarification of their positions.
“The Tabur family, another major shareholder and signatory to the agreement, has confirmed that they remain committed to the transaction.
“The implications for the transaction are currently uncertain. Kingfisher will update investors in due course.”
It is not known what reservations the two parties have about the deal.
Kingfisher revealed last April it was in talks about a €275m acquisition of Mr Bricolage, which operates 516 stores, most of them franchised.
Kingfisher is second in the French market at present, behind Group Adeo, which owns Leroy Merlin, but the acquisition of Mr Bricolage would put the B&Q owner out in front.
The acquisition would also give Kingfisher a presence in two new foreign markets – Belgium and Bulgaria, where Mr Bricolage has 43 and seven stores respectively.