UK competition watchdog backs DFS and Sofology deal
The UK’s largest furniture retailer is set to complete the tie-up by November 30.
Shares in DFS were sitting pretty after the competition watchdog waved through the sofa firm’s £25 million swoop for smaller rival Sofology.
The UK’s largest furniture retailer rose just shy of 1% on the London Stock Exchange after the Competition and Markets Authority (CMA) cleared the deal.
The tie-up, which is expected to hand DFS £4 million in cost savings, is set to be complete by November 30.
Chief executive Ian Filby said: “I’m delighted that we are able to complete this deal, which is a big step for DFS towards achieving one of our strategic growth aims of broadening our product and brand appeal.
“Sofology is a fantastic business that takes great pride in the levels of service and innovation it provides to customers and is a great addition to our family.
“This is an important and historic moment for both businesses, our investment demonstrates the confidence we have in Sofology and the wider group.
“I look forward to working with Jason Tyldesley and his team to continue this success.”
Clearing the regulatory hurdle will come as a boost for DFS after announcing a profits blow last month from the Brexit-hit pound and falling consumer confidence.
The company booked a 22% drop in pre-tax profits to £50.1 million in the year to July 29, while revenue edged up just 0.9% to £762.7 million.