Hornby, the makers of the famous railway toys, are buying out Corgi in a £7.5 million deal.

Corgi marks the latest in a long line of toy brands that Hornby has been adding to its cannon over the last few years.

Hornby also own the slot car racing phenomenon Scalextric, and two years ago they bought up the model company Airfix. To complete its domination of the model industry Hornby also own Humbrol paints, who are a favourite with model and train enthusiasts.

Hornby chief executive Frank Martin said:

We are pulling together the hobby elements of the British toy industry. We know there is huge untapped demand out there.