B&Q-owner Kingfisher abandons planned takeover of French DIY chain Mr Bricolage

Kingfisher bosses were left embarrassed as the owner of B&Q abandoned plans to buy rival French DIY chain Mr Bricolage after nine months of negotiations.

The collapse of the €275 million (£200 million) deal is a blow to the retail group’s new chief executive, Veronique Laury, who tomorrow presents her first set of results since taking over from Sir Ian Cheshire earlier this year.

The company, which already owns French chains Castorama and Brico Dépôt, had hoped to close the deal by its self-imposed deadline of tomorrow.

But last week Mr Bricolage’s largest shareholder, ANPF, which controls the chain’s franchisees and has a 42% stake, changed its mind and opposed the deal. The board followed suit.

The deal would have seen Kingfisher enter the franchise model for the first time and continue its growth on the continent, but ANPF’s opposition would have made it impossible to get regulatory approval in France within the deadline.

B&Q boss Kevin O’Byrne is expected to step down after his was overlooked for the top job in favour of Laury.

Kingfisher shares rose 2.3% to 366p.