Raleigh International has formed a new company to enter the South African market following the end of its licencing deal with Probike in the region.
The Probike agreement was a long-running, close co-operation that covered South Africa, the rest of Africa and India.
Raleigh said these huge markets are key for it, hence the creation of the new company – Raleigh South Africa – to enter the market directly.
The move was prompted after the acquisition of Probike South Africa by Scott.
John MacNaughtan, MD of Raleigh International, said: "This move is probably a blessing in disguise as it forces us to take a direct involvement in these important markets. Our first priority is to ensure continuity of supply to our customers and to assure all consumers of Raleigh bicycles that their warranties will be honoured."
Gerry Appleton, international Sales exec for Raleigh International, added: "Whilst we are sorry our current era in South Africa has come to an end our new company gives us the opportunity to understand and engage with our customers more closely. By getting directly involved we can benefit the consumer and therefore everyone involved with Raleigh."