EU deadline looms for Rexel’s Hagemeyer deal

The European Commission has set the deadline for its inquiry into Rexel's proposed acquisition of Dutch rival Hagemeyer for 8 February.

French electrical supplies distributor Rexel said last month that its Kelium SAS subsidiary formally launched an offer of 4.85 Euro per Hagemeyer share. The amount was recommended by the Dutch company's board. The tender period runs from 24 December to 4 March.

Hagemeyer shareholders will meet on 25 February to vote on the proposal. The offer is subject to acceptance by owners of at least 66.7% of Hagemeyer shares.

As part of the transaction, Rexel agreed to sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar, with estimated proceeds of 1.6 billion Euros.

Rexel Senate is Rexel’s electrical wholesaler subsidiary in the UK. Hagemeyer owns two leading UK distributors: Newey and Eyre and WF Electrical. Speculation will no doubt continue to persist with regards to whether Rexel will offload one of these subsidiaries if the deal goes ahead.