Of takeover battles

Sylvia Herzog, DIY in Europe Germany
News has just reached us that the British DIY group Focus Do It All intends to engulf its competitor Wickes by means of a hostile takeover bid. To say that competition in the European DIY trade is becoming increasingly tough and more and more like the American model is to say nothing new. But the means by which the battles are now being fought demonstrates a new line of approach. The managers of Focus Do It All seem to have been inspired by the success of Vodafone, the British mobile network operator, which won the Mannesmann shareholders over to its side.
The offer made to Wickes shareholders as well is all too tempting: number 3 on the UK’s do-it-yourself scene is paying 430 pence per share. An offer that was 63 per cent above the market closing rate on the day it was made. And according to information from Focus Do It All, this has already succeeded in convincing a number of major shareholders to part with their shares. Should the takeover succeed, and all the signs point in that direction at the moment, the number of DIY multiples on the British market will shrink from five to four.
Those remaining on the battlefield will be B&Q, Homebase, Focus Do It All and Great Mills. Focus Do It All will be catapulted to the head of the field through its takeover of Wickes. at least where the total number of DIY stores is concerned, with 340 outlets ahead of B&Q (296) and Homebase (288). However, the league tables based on total retail area and sales will not change, even though sales will rise by around 80 per cent to 1 700 Mio euro and retail area will expand by 45 per cent to 870 000 m² following the acquisition.