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Tesco hopes Dobbies acquisition will aid entry to eco-heating market

TESCO plans to enter the green market are a step closer, following its agreement to acquire Dobbies Garden Centres Plc for £155.6 million.
Tesco hopes Dobbies acquisition will aid entry to eco-heating market
Britain's largest retailer Tesco Plc has put a £155.6 mln offer on the table for Dobbies, seller of gardening products including solar panels.

Tesco said last week it made the 1,500 pence a share deal to develop its non-food offering and access carbon-efficient products like home insulation, solar panels and ground source heat pumps.

The retailer says it plans to keep the Dobbies brand and its Scottish headquarters, as well as the management team led by chief executive officer James Barnes.

A major Dobbies shareholder Sir Tom Hunter is in talks with other retailers to thwart Tesco's plans to takeover the gardening products retailer.

Dobbies has 21 stores in England and Scotland and is known for its larger outlets.

It reported sales up 36.3% at £40.0 mln in the 6 months to end April, while pretax profits were up 43.6% at 2.5 mln pounds.

Tesco's market share of the non food sector is less than 7% and its UK non-food sales top more than £6 bln a year.
11 June 2007

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