The DTI has announced that it is lifting the restrictions placed on Kingfisher plc that had prevented it from taking control of Dixons plc.
Following a Monopolies and Mergers Commission report in 1990 the company gave undertakings were given by Kingfisher that it would not make a bid for Dixons. At the time, the company owned the rival Comet electrical retailer. The Commission had concluded that owning both companies would weaken competition.
Kingfisher has since sold the Comet business to Kesa Electricals plc and has concentrated on becoming DIY specialists through its ownership of the B&Q chain of stores. With its new focus, a bid for Dixons by Kingfisher is now unlikely, particularly as the chain reported flat sales in its latest report.
In a statement, Competition Minister Gerry Sutcliffe said, `the focus of the MMC’s concerns was the possible overlap between Comet stores and Dixons and Currys stores. This overlap no longer exists as far as Kingfisher is concerned, so, on the advice of the Office of Fair Trading, I have decided it is appropriate to release them from these undertakings.’
From PC Pro