Withdrawal from Canada

Kingfisher is selling its Canadian home improvement chain, Réno-Dépôt, to Rona for a total consideration of Can. $ 355 mio (€ 223 mio). The necessary clearance by the Canadian competition authority is expected in late summer 2003. Réno-Dépôt operates 20 stores, 14 in Quebec and six in Ontario. In the 2003/2003 financial year (to 1 February 2003) the business made a profit of £ 21.3 mio (€ 30.8 mio) on sales of £ 358 mio (€ 518 mio). Gerry Murphy, Kingfisher chief executive officer, justifies the step by reference to the group’s strategic goal “to focus on building and consolidating leading positions in European and Far Eastern markets where there is scope for substantial organic growth”. The Canadian chain belongs to the UK group through Castorama, the Kingfisher subsidiary that purchased Réno-Dépôt in April 1997. Currently Rona operates a network of 527 franchised, affiliated or corporate stores.