HAMSPHIRE-based do-it-yourself retail chain B&Q is set to become the focus of business for shopping giant Kingfisher under a radical restructuring plan.

The parent company has unveiled plans to launch a £2bn rights issue in the City to help fund a radical overhaul.

The group wants to demerge its electrical arm, which includes the Comet chain, to focus on building up its DIY business across Europe.

It intends to spend around £3.2bn to take full control of the French DIY group Castorama, in which it already owns a 55 per cent stake.

Group chairman Francis Mackay said: "Our vision is to create two outstanding independent businesses in home improvement and electricals.''

Kingfisher is already the market leader for DIY in Europe, operating Chandler's Ford based B&Q, but does not currently exercise management control over Castorama.

The bid for full control may yet be hampered by French unions and a complex takeover process agreed four years ago.

Under the terms of the deal, the price paid for the 45 per cent stake by Kingfisher has to be certified by an independent international bank as a fair bid.

Kingfisher said this process would start within two weeks and that details of the rights issue would be held over until clearance by the appointed bank.

Mr Mackay said the demerger of the electricals arm, which also includes Darty in France, would take place within the year but should happen "fairly rapidly".

The electricals business is likely to have a market value of around £2.5bn to £3bn as a separate entity on the Stock Exchange.