Speculation linking B&Q owner Kingfisher to a possible takeover by US retail giant Home Depot resurfaced today.
Kingfisher shares rose by as much as 3% as rumours of a potential deal involving Europe’s biggest DIY retailer stirred trading interest.
Shares later eased slightly to stand 4.75p higher at 286.25p.
The pair have been linked in the past, although talk has gathered strength following the demerger of Kingfisher’s electricals arm in July.
Kingfisher declined to comment on the speculation today.
Hilary Cook of Barclays Stockbrokers said: “It’s been a rumour for quite a while, but it’s become much more plausible now Kingfisher is just DIY.”
She added that a tie-up would represent a “hugely powerful combination”, with Home Depot generating annual sales of $58.2bn (£33.9bn) from 1,500 stores.
The company, founded in 1978 in Atlanta, Georgia, has outlets in the US, Canada, Mexico and Puerto Rico, but nothing in Europe.
It is the second largest retailer in the US.
A combination with Kingfisher would provide it with 550 stores in seven countries. including 324 B&Q outlets in the UK.
The company has annual sales of around £6bn, including from 105 Castorama stores and 57 Brico Dépôt stores in France.
Kingfisher, which used to own Woolworths and Superdrug, spun off its Comet electricals arm – now known as Kesa – into a separately listed company.
References: EGi News 02/12/03
