More rationalisation for merchants and buying groups

Published:  30 October, 2009

CHELTENHAM: Merchants across Europe can expect more rationalisation, according to the latest report from AMA research.

Its latest report into the sector, ‘Builders Merchants Market – Western Europe 2009’, said the suspension of acquisition programmes international groups is a short-term and will renew.

The report added: "In 2007-08, there has been significant activity among buying groups with acquisitions and mergers within national boundaries, as well as pan-European links being developed to combat the growth of the major groups.

"Alongside structural changes in distribution, the markets are also likely to see increased concentration of supply as large groups seek to rationalise supply structures."

The European building materials market has become increasingly concentrated with the emergence of more pan-European groups in most key sectors, though companies continue to develop concepts and products that can fit into the national markets in which they operate.

The report went on to review the supply trends in each of the markets, illustrating the current position of the leading merchants, and identifying areas of potential change in the future, while also reviewing key factors influencing product trends.

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