Grafton Group said it expected the sale of its traditional merchanting business in Britain would close by the end of February, despite an ongoing process with competition regulators.

The company agreed in July to sell the business, which includes Buildbase, Civils & Lintels, PDM Buildbase, the Timber Group, Bathroom Distribution Group, Frontline and NDI, to Huws Gray for £520 million (€. 613 million).

The transaction was notified to the Competition and Markets Authority (CMA), which undertook a phase one review. The results of that review were announced on Monday, and concluded that it is or may be the case that the merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom. The CMA is considering whether to accept an undertaking in lieu of a Phase 2 reference.

Grafton said the divestment is expected to close by February 28th, 2022 and completion is not conditional on the outcome of the CMA process.