LONDON/PARIS (Reuters) - Kingfisher (>> Kingfisher plc), Europe's largest home-improvement retailer, has ditched its planned purchase of French DIY chain Mr Bricolage (>> MR BRICOLAGE), it said on Monday, following concerns over the number of store closures that would have been required to clear antitrust hurdles.

Doubts had been raised regarding the deal last week after the majority of the Mr Bricolage board and its largest shareholder, franchisee group the Association Nationale des Promoteurs de Faites Le Vous-Mene (ANPF), expressed reservations.

The shareholders were unhappy with the proposed sale of 44 stores to win antitrust approval, which many felt could destabilise the franchise network. Mr Bricolage has 797 stores in France, most run by franchisees.

Mr Bricolage shares, which were suspended on March 23, will resume trading on March 31 on the Paris bourse. They last closed at 14.50 euros on March 20.

In a separate statement on Monday confirming the collapse of the 275 million-euro (201 million pounds) deal, Mr Bricolage (>> MR BRICOLAGE) expressed confidence it could thrive as a standalone business.

"Mr Bricolage has solid fundamentals enabling it to pursue its growth in an independent manner," the statement said.

Kingfisher had struck a deal last July with the ANPF, which holds 41.9 percent of Mr Bricolage, and the founding Tabur family, which holds 26.2 percent, to buy their holdings for 15 euros per share.

But the agreement was subject to securing satisfactory regulatory clearance and carried a provision that it would lapse if antitrust clearance was not obtained by March 31 unless an extension could be agreed by all parties.

Kingfisher said it was considering "all options" after the ANPF refused to grant an extension to that deadline.

Shares in Kingfisher, closed 1.95 percent higher on Monday at 364.8 pence, a fall of 14 percent over the last year.

Kingfisher had wanted Mr Bricolage to beef up its position in France, the company's most profitable market, where it already trades as Castorama and Brico Depot.

The collapse of the deal comes four months after Veronique Laury succeeded Ian Cheshire as Kingfisher's chief executive. Laury will present Kingfisher's 2014-15 results on Tuesday, with the firm expected to post a 9 percent decline in pretax profit.

(Editing by Jason Neely and Greg Mahlich)

By James Davey and Dominique Vidalon

Stocks treated in this article : MR BRICOLAGE, Kingfisher plc