Kingfisher's Mr Bricolage deal collapses (updated)

Mr Bricolage SA

30/03/2015 09:06

(Adds detail) 
    LONDON, March 30 (Reuters) - Kingfisher  KGF.L , Europe's 
largest home improvement retailer, said on Monday its proposed 
275 million euro ($298 million) purchase of smaller French rival 
Mr Bricolage had collapsed. 
    Doubts had been raised regarding the deal last week after 
the majority of the Mr Bricolage board and its largest 
shareholder, franchisee group the Association Nationale des 
Promoteurs de Faites Le Vous-Mene (ANPF), expressed 
reservations.  ID:nL6N0WS4P2  
    Last July Kingfisher struck a deal with the ANPF, which 
holds 41.9 percent of Mr Bricolage, and the founding Tabur 
family, which holds 26.2 percent, to buy their holdings for 15 
euros per share. The agreement was binding, subject only to 
regulatory clearance. 
    The agreement carried a provision that it would lapse if 
anti-trust clearance was not obtained by March 31 although an 
extension could be agreed by all parties. 
    On Friday the ANPF refused any extension. 
    "Consequently the transaction will not proceed. Kingfisher 
is considering all of its options," it said. Those options could 
include legal action. 
    Mr Bricolage declined to comment. 
    Shares in Kingfisher have fallen 15 percent over the last 
year but were up 2.6 percent at 367 pence at 0754 GMT.  
    Mr Bricolage shares were suspended from trading in Paris 
last Monday. 
    Kingfisher had wanted Mr Bricolage to beef-up its position 
in France, its most profitable market, where it already trades 
as Castorama and Brico Depot. 
    The collapse of the deal comes four months after Veronique 
Laury succeeded Ian Cheshire as Kingfisher's chief executive. 
    Laury will present Kingfisher's 2014-15 results on Tuesday 
with the firm expected to post a 9 percent fall in pretax 
profit. 
    ($1 = 0.9230 euros) 
 
 (Reporting by James Davey; additional reporting by Dominique 
Vidalon; editing by Neil Maidment and Jason Neely) 
 ((james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters 
Messaging: james.davey.thomsonreuters.com@reuters.net)) 
 
Keywords: MR BRICOLAGE M&A/KINGFISHER