The electric supply wholesaling oligopoly surges
France-based Rexel SA, the world's #1 distributor (wholesaler) of electrical equipment has reportedly won its hostile bid for Dutch-based rival Hagemeyer NV. The deal is for $4.5 billion. it has been determined that Hagemeyer's US and Asian operations will be split off to French rival Sonepar SA, though exact terms and Sonepar's contribution have not been announced. Privately-held Sonepar, which is the #2 in the field, was bidding against Rexel for the company.
Rexel, Hagemeyer and Sonepar are all in the business of reselling such products as electric switches, lighting, surge protectors, wiring, and outlets and sell them to retailers, contractors, and industrial manufacturers. Rexel has grown dramatically in North America oove rthe past few years. But the US, which accounts for over half of Rexel's business, has been declining thanks to the fall of the dollar and housing bust. By shifting off Hagemeyer's US assets and building its European presence, Rexel is trying to shift its asset balance somewhat.
Hagemeyer is a venerable 103-year old company that had run into financial problems. . Rexel has a catalog of 1.2 million electrical parts and supplies. That added up to $12 billion in sales over the last year.
The deal just concentrates even further this already very strong oligopoly.
9:08:08 PM 
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