Activist Peltz wants plumber Ferguson to sell UK business

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The world's biggest plumbing and heating merchant is being urged by Nelson Peltz's Trian to exit the UK, Sky News learns.

One of the world's most prominent activist investors is pushing the FTSE-100 plumbing and heating giant Ferguson to sell its UK operations as part of a wholesale retreat from Britain.

Sky News understands that Nelson Peltz, whose Trian ‎investment vehicle spent more than £700m on buying a 6% stake in Ferguson last month, has told the company's board it wants it to explore a sale of its UK arm. The move would be part of a broader strategic shift by Ferguson sought by Mr Peltz, which would include scrapping its London stock market listing and switching it to the US.Although it is a member of the UK's blue-chip share index, Ferguson's revenues are dominated by its business on the other side of the Atlantic.Advertisement

If Ferguson's board does elect to pursue a sale of the UK arm, City sources believe ‎an auction would attract significant interest from private equity firms. Travis Perkins, the builders' merchant, is also running a sale process for its plumbing and heating business.

 

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