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Rexel UK sells seven branches for OFT approval

An electrical wholesaler merger under debate at the Office of Fair Trading (OFT) has been settled after Rexel UK agreed to sell off seven branches.

The company, which is headquartered in Hertfordshire, acquired 59 Wilts Wholesale Electrical Company branches in March 2012 and raised OFT concerns regarding competition.

Electrical distributors Kew Ltd. also put forward their concerns about the deal, with worries that prices would be pushed up as a result.

Rexel UK has since taken efforts to sell off seven of its branches to remedy OFT worries that the deal would reduce competition in six locations in the UK.

In October last year, the firm offered to sell off branches in these regions, which OFT accepted on Wednesday so the acquisition will not be referred on to the Competition Commission.

The deal will see Wilt’s 60 Southern branches join Rexel’s 360 existing locations, which come under several names including Newey & Eyre, WF Senate and Denmans.

Branches will be sold off in Chandlers Ford, Chippenham, Devizes, Midsomer Norton, Rugby, Trowbridge and Weymouth.

Ali Nikpay, OFT Senior Director, commented: “The OFT was concerned that, as a result of Rexel’s acquisition of Wilts, electricians in six local areas could face higher prices and a reduction in choice.

“The sale of all Wilts branches in these areas to Kew should ensure there continues to be effective competition in these areas.”

Rexel is currently the largest electrical wholesaler in the UK, and contributed €950m to the group’s revenues in 2011.

This was posted in Bdaily's Members' News section by Miranda Dobson .