The Competitions and Markets Authority has given the go ahead to the merging of online retail giant Wiggle and Chain Reaction Cycles.
The corporate banner is now WiggleCRC and it will be chaired by Brian McBride and managed by Stefan Barden. Chris Watson, Chain Reaction’s current MD, will remain on the board and has a significant stake in the business.
With nothing now blocking the closing of the deal, Stefan Barden, CEO of Wiggle 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.”
Once complete, the business will have revenues in excess of £300 million, though many are speculating that Britain’s proposed exit from the European Union will make exporting – an increasingly valuable part of the firm’s trade – more complex for the UK-based business. Furthermore, almost half of Chain Reaction’s 20,000 daily sales head outside of Europe, often as far as the US and Australia.
Back in February (long before Brexit) we asked the industry for their thoughts on how the move would affect trade and our panel had this to say.