Builders' merchant Travis Perkins has outlined proposals to sell stores in 20 areas across the UK in a bid to get industry regulators to approve its proposed £558 million purchase of BSS Group.
An investigation by the Office of Fair Trading (OFT) concluded that the main area of concern would be an overlap in the plumbing and heating supply subsidiaries of both parties.
The OFT said that although the deal would not cause any competition concerns nationally, there could be some issues at a local level.
The watchdog will now conduct a public consultation on the proposals, which if approved will create the biggest plumbing and heating trade and retail distribution business.
A statement from Travis Perkins on the sale of its stores said: "We believe that these branches will be of interest to a number of eligible buyers and that their sale will not materially impact the strategic and financial attractiveness of the overall transaction."
Travis Perkins and BSS are hopeful that the acquisition can be completed by the end of December.
Copyright Press Association 2010