Home Depot said to be targeting Kingfisher
Slimmed down UK group is tempting target
July 16 2003
US DIY giant Home Depot is again reported to be considering a takeover of the of the UK Kingfisher business.
The latest speculation comes just over a week after Kingfisher demerged its Kesa electricals arm As a pureplay DIY retailer spearheaded by the B&Q chain, Kingfisher would be a very easy fit with Home Deport, which is known to have looked at the business in the past.
It has also emerged that Home Depot chief executive Robert Nardelli is due to have an informal meeting with his Kingfisher counterpart Gerry Murphy this week.
Nardelli said in a recent interview with the Financial Times that the two businesses were run on very similar lines in terms of both management approach and retail offer.
Kingfisher shares rose 6.25p on Tuesday as the City responded to the rumours of a possible bid. One analyst said: “Having demerged the last of its non-DIY businesses and sold off non-core assets, it’s hard to see what more Kingfisher could do to interest Home Depot, apart from hoisting up a ‘for sale’ flag.”
Home Depot needs further opportunities for growth outside the US where its growth is approaching saturation point and new stores are taking sales from existing outlets in some areas.
