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Wiggle and Chain Reaction merger referred to Competition and Markets AuthorityWiggle and Chain Reaction Cycles.jpg

Wiggle and Chain Reaction merger referred to Competition and Markets Authority

CMA surveying suppliers
by Alex Bowden
Wed, May 11, 2016 12:17
6

The Competition and Markets Authority (CMA) says it has begun an inquiry into whether the merger deal between Wiggle and Chain Reaction could lead to a "substantial lessening of competition". It is being reported that suppliers of bikes and parts and accessories are being surveyed for their views.

According to a joint statement from the companies when the merger was announced in February, "the transaction is subject to a number of regulatory approvals, including merger control clearance from the Competition and Markets Authority (CMA)."

The CMA has since told The Belfast Telegraph:

"The CMA is considering 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."

Halfords will remain cycling retail market leader in the UK with an estimated 20 to 25 per cent share. However, BikeBiz reports that the CMA is concerned with online bike and parts and accessories sales, rather than other aspects of the business.

Suppliers are being asked the proportion of their sales made through online retailers and whether they prefer to sell to offline or online retailers. They are also being asked to rank online bike retailers and say who they consider Chain Reaction Cycles’ closest competitor to be. The deadline of the official invitation to comment is May 18.

Wiggle
Chain Reaction
CMA
Alex Bowden

Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.

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6 comments

Avatar
CXR94Di2 | 8 years ago
1 like

I use wiggle and crc, don't differentiate other availability/price

Avatar
Yorkshire wallet | 8 years ago
1 like

Halfords -25% of the UK market !!

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gmac101 replied to Yorkshire wallet | 8 years ago
1 like

Yorkshire wallet wrote:

Halfords -25% of the UK market !!

 

Round my way, SW London, a lot of the bikes locked up to the street sheffield stands are Halfords brands, Apollo, Pendleton, Carrera and Boardman.  For a lot of people Halfords is where you go for a bike.  

Avatar
lushmiester | 8 years ago
1 like

Provided the UK remains in the EU there is probably no issue here, provided all they are considering is online sales. Some of the best deals come from within other EU member states and they are going to be the main source of online competition to a merged chain reaction wiggle company going forward. If the idea is to protect  business were part of their income comes from on line sales then there is a potentual issue.

If the UK leaves the EU and irland remains then all bets are off as to how this would impact.

Avatar
laura_ci replied to lushmiester | 8 years ago
2 likes

lushmiester wrote:

Provided the UK remains in the EU there is probably no issue here, provided all they are considering is online sales. Some of the best deals come from within other EU member states and they are going to be the main source of online competition to a merged chain reaction wiggle company going forward. If the idea is to protect  business were part of their income comes from on line sales then there is a potentual issue.

If the UK leaves the EU and irland remains then all bets are off as to how this would impact.

But aren't CRC a Northern Irish company? Not sure what your point is because if the UK leaves the EU this will include NI. Sorry if I missed something in your point.

Avatar
Housecathst replied to laura_ci | 8 years ago
2 likes

laura_ci wrote:

lushmiester wrote:

Provided the UK remains in the EU there is probably no issue here, provided all they are considering is online sales. Some of the best deals come from within other EU member states and they are going to be the main source of online competition to a merged chain reaction wiggle company going forward. If the idea is to protect  business were part of their income comes from on line sales then there is a potentual issue.

If the UK leaves the EU and irland remains then all bets are off as to how this would impact.

But aren't CRC a Northern Irish company? Not sure what your point is because if the UK leaves the EU this will include NI. Sorry if I missed something in your point.

I think the reference is to the likely hood of customers in the uk being charged Vat, import duty and the £8 handling fee from the post office (charging you money, for the privilege of charging you money) much like buying anything from the US, if we leave the EU, so no more buying stuff from those German discount retailers. of course once the trade deals have all be sorted it'll back to business as usual, in 10 years time or so. 

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