Earlier this year we reported on the massive consumer impacting new that long time fierce online competitors, Chain Reaction Cycles and Wiggle were to merge into one super seller.
The size of both companies and the likely huge impact on the online retail sector meant that they needed the official approval of the Competitions and Market Authority before the two could properly sign off on becoming partners. That authority has now been given and a release from the two businesses has announced that the new company formed from the merger will be called WiggleCRC.
The new company will be chaired by Brian McBride and managed by Stefan Barden. Current CRC top man Chris Watson will be a member of the new board, having retained a significant shareholding in the new company.
“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.”, said Stefan Barden, CEO of Wiggle.
In the original press release announcement earlier this year Chris Watson said, “This is an exciting new chapter for the Chain Reaction Cycles brand. Since the business started in 1984, we’ve grown strongly from our mountain bike origins in Northern Ireland to meet the needs of more MTB, BMX and road cyclists across more countries. Coming together with Wiggle is a great way to continue that growth, as a global force in cycling and a leader in technology, eCommerce and innovation.”
Will the impending Brexit affect the business of this new megacorp with it effectively being moved outside the EU trading zone? This is a question of uncertainty that probably was not on the minds of either company when they set about planning this merger. The original release talked of combined revenues in excess of £300 million per year. With much of those revenues coming from export the room for worry about the implications for Brexit will undoubtedly be preying on the minds of the new board.
We will continue to watch proceedings closely.