UK: CMA to investigate £300 million cycling merger

The takeover of Chain Reaction Cycles by Portsmouth-headquartered Wiggle, which could create a £300m retail giant, is set to be examined by the Competition and Markets Authority (CMA).

The watchdog has invited interested parties to comment on the deal, which was announced in February 2016.

In an update to the London Stock Exchange, the CMA said it is considering whether the transaction 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”.

It was confirmed in February that Wiggle is set to acquire Chain Reaction, with the new entity to offer an extended range of brands and products.

Chain Reaction started life from a single shop in Northern Ireland more than 30 years ago and now operates one of the largest online bike stores in the world.

The CMA is expected to make a decision on the deal on 30 June 2016.

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