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Wiggle and Chain Reaction merger clearedWiggle and Chain Reaction Cycles.jpg

Wiggle and Chain Reaction merger cleared

Competition & Markets Authority green-lights merger that creates online giant with £300m+ turnover
by Simon_MacMichael
Thu, Jun 30, 2016 16:18
11

Online cycling retailers Wiggle and Chain Reaction Cycles say that they expect their merger, announced in February, to complete after it was cleared by the Competition & Markets Authority (CMA).

> Wiggle and Chain Reaction confirm merger

The CMA said last month that it would consider "whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services."

> CMA probes Wiggle and Chain Reaction merger

 The holding company for the two brands, which will have a combined turnover in excess of £300 million, will be called WiggleCRC.

It will be chaired by Brian McBride, who currently occupies that role at Wiggle, with the same company's Stefan Barden becoming chief executive officer of the combined operation.

Chain Reaction Cycles' managing director, Chris Watson, will sit on the board, and will be a major shareholder in the business.

In a joint statement, Barden and Watson said: “Together, Wiggle and Chain Reaction Cycles’ first class team of sports enthusiasts and strong heritage and expertise in cycling, running, swimming and tri-sports, will form the foundations for building a global champion.”

The CMA says on its website that "the full text of the decision will be available shortly."

Wiggle
Chain Reaction Cycles
Competition & Markets Authority
Simon MacMichael

Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.

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11 comments

Avatar
Trickytree1984 | 8 years ago
3 likes

Halfords are by far the biggest cycle retailer. Hence why they don't care about this merger

 

For me, I see this as a good thing. I use Wiggle almost exclusively. Sometimes I use CRC but generally avoid. Wiggle is cheaper, faster and has the best customer service of ANY online retailer. The returns are second to none

Avatar
davman | 8 years ago
0 likes

I'm not convinced this is a good thing, although i don't doubt the CMA have done their work (or have they).

To me, this seems to be removing competition from the Market. At the moment, Wiggle and CRC compete with each other but, once this is completed, that competition is diluted so us, as the consumers, are left poorer for it. I know there are other online retailers who are just as good and efficient, but this does seem a step backwards

Personally, i've never been that enamoured by Wiggle; i've never benefitted from this fast delivery service that I read about, to me they are no better or worse than other online retailers. CRC, however, i've always found to be very good. I hope that the service in the new company, whatever it's called, doesn't deteriorate, but when you have to start making savings to cover the cost of the merger, or to give shareholders proft....

Avatar
Jimnm replied to davman | 8 years ago
0 likes

davman wrote:

I'm not convinced this is a good thing, although i don't doubt the CMA have done their work (or have they).

To me, this seems to be removing competition from the Market. At the moment, Wiggle and CRC compete with each other but, once this is completed, that competition is diluted so us, as the consumers, are left poorer for it. I know there are other online retailers who are just as good and efficient, but this does seem a step backwards

Personally, i've never been that enamoured by Wiggle; i've never benefitted from this fast delivery service that I read about, to me they are no better or worse than other online retailers. CRC, however, i've always found to be very good. I hope that the service in the new company, whatever it's called, doesn't deteriorate, but when you have to start making savings to cover the cost of the merger, or to give shareholders proft....

Yep! It's all about making more money and we all know that the customer Will probably pay more due to less competition in the market place, I could be totally wrong as mergers will acquire greater purchasing power and it may be that they will be able to sell items more cheaply... 

Its a wait and see thing. I lean towards CCR also. 

Avatar
handlebarcam | 8 years ago
0 likes

I'm a Chain Reactionary. I want my online retailer back. Wiggle is a corrupt bureaucracy that wants us all to ride around in DHB jerseys like some Mao suit. And stuff the bloody Haribos, send them all back to where they belong.

Avatar
Leviathan replied to handlebarcam | 8 years ago
1 like

handlebarcam wrote:

I'm a Chain Reactionary. I want my online retailer back. Wiggle is a corrupt bureaucracy that wants us all to ride around in DHB jerseys like some Mao suit. And stuff the bloody Haribos, send them all back to where they belong.

Wiggle sell Castelli too.

What if there is no free trade with Europe, could be a tax on Haribo!

Avatar
Bmblbzzz | 8 years ago
1 like

OMG! What if Haribo merges with Kraft or Nestle? !!?!!!?!1!???

Avatar
step83 replied to Bmblbzzz | 8 years ago
1 like

Bmblbzzz wrote:

OMG! What if Haribo merges with Kraft or Nestle? !!?!!!?!1!???

 

We would be doomed, theyd do some rubbish sugar free version.

 

Ordered from Tredz, got TWO! bags of harbio Luxury I tell you.

Avatar
bendertherobot replied to step83 | 8 years ago
1 like

step83 wrote:

Bmblbzzz wrote:

OMG! What if Haribo merges with Kraft or Nestle? !!?!!!?!1!???

 

We would be doomed, theyd do some rubbish sugar free version.

 

Ordered from Tredz, got TWO! bags of harbio Luxury I tell you.

They only slightly like you. My good friend CT off of here, got three with an order from Tredz this week. Three. He is worshipped, it seems

Avatar
cdamian | 8 years ago
1 like

I wonder how long it takes until they buy a similar company in continental Europe. Bike Components, Bike24 or Deporvillage come to mind.

And Haribo obviously.

 

 

Avatar
the little onion | 8 years ago
7 likes

Never mind this competition and monopoly rubbish, what does this mean for free Haribo?

Avatar
ACyclingGuitarist replied to the little onion | 8 years ago
0 likes

the little onion wrote:

Never mind this competition and monopoly rubbish, what does this mean for free Haribo?

 

These are the real questions we should be asking.

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