Kingfisher wants Castorama in its entirety

Kingfisher has confirmed that it intends to acquire the 45 per cent stake in Castorama Investissements SCA that is not yet under its control and hive off its electrical retail business. Kingfisher is offering € 67 per share, or a total of € 5.1 bn. A British-French management team under Kingfisher chairman Francis Mackay and with Sir Geoff Mulcahy as chief executive will take over responsibility for running the group. Efforts are being made to find a replacement for Mulcahy within the next six months. The complete takeover of Castorama is intended to close the gap that yawns between B&Q and Castorama in terms of both growth rates and profits by taking advantage of volume purchasing, among other things. Kingfisher has announced a programme of store renovation and a faster take-up of core product ranges. What is more, the Cost Price Reduction programme (CPR) that has already been implemented by B&Q is to be launched at Castorama as well.