Kingfisher's financial advisers will be working on demerging the UK holding company's general merchandise businesses, after the group abandoned talks to dispose of the operations.

Kingfisher spent several months reviewing whether to sell off or demerge the general merchandise business, which includes Woolworths, Superdrug and the entertainment operations. However, although the company spoke to several potential trade buyers and private equity firms about a sale, it decided against it, and opted instead for a demerger. Kingfisher is understood to have been just a couple of weeks away from agreeing to sell Superdrug to Dutch retailer Kruidvat.