Builders' merchant Travis Perkins has had its takeover of rival merchant BSS delayed by the Office of Fair Trading.

Travis Perkins' £558 million takeover of rival builders' merchant BSS has been delayed by at least a month, as the Office of Fair Trading (OFT) scrutinises the deal more thoroughly.

On Friday, the OFT extended the deadline for the examination of the deal to 19 October.

Travis Perkins' management team had hoped to formally start the merger under a scheme of arrangement, which involves the courts, on 22 October. However, this was dependent on approval by the original timetable.

It is widely expected that the Office of Fair Trading will grant approval, though the new group could be asked to sell around 10 branches, out of a combined total of about 1,700, to ensure competition in certain areas.

According to the Independent on Sunday newspaper, bankers involved in the deal have been surprised by the detail the OFT has demanded. New court dates will now have to be organised, which will take some time.