Shares in Travis Perkins were up nearly seven per cent on the FTSE 250 after the group said that it had made an offer for plumbing and heating company BSS Group, valuing the company at 433 pence per share, or £553 million.

Should the agreement go ahead Travis Perkins and BSS claim that they will be the largest plumbing and heating and retail distribution group in Britain, overtaking Wolseley.

BSS said that it was willing to recommend the offer by Travis Perkins to its shareholders.

Travis Perkins said this month that its revenue in the four months to 30 April increased 2.2 per cent, while like for like sales increased 1.4 per cent. However BSS said this week that its yearly profit had fallen 24 per cent to £44.2 million.

By 16:17 shares in Travis Perkins were up 6.71 per cent to 795.00 pence per share on the FTSE 250 while BSS shares soared 35.38 per cent to 440.00 pence per share.