22 May 2007
Domestic emergency company Homeserve is currently in talks to take over domestic warranties giant Domestic & General in a move designed to speed up its process of being able to offer "total home emergency cover".
By acquiring the company, Homeserve will look to extend Domestic & General's warranties service to its customers, providing them with additional protection for so-called white goods, including boilers.
Homeserve, which currently provides insurance to homes in the event of water and electricity emergencies, has also just acquired Anglia - one of the UK's leading domestic repair services.
While the merger of two such big names in the domestic industry could cause competition concerns, Geoff Slaughter, Energy Product Manager at the independent price comparison and switching website uSwitch.com, claimed that the union could actually benefit consumers.
"The home and heating cover market is dominated by British Gas - no other company comes near it for size and scope. Homeserve and Domestic & General are the nearest contenders so I can understand why some may become jittery at the thought of the two becoming one," said Mr Slaughter.
"However, a merger might actually be good for competition - it would create a company with enough clout to take on British Gas for its title as number one provider and would likely show consumers that there is more than Hobson's choice available to them."
© 2008 Adfero Ltd
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