Magic circle firm acts as FTSE 100 group abandons UK tax residence

Freshfields Bruckhaus Deringer has won the mandate to advise FTSE 100 plumbing and heating group Wolseley on its relocation to Switzerland for tax reasons.

The magic circle firm advised the longstanding client on the move after the company failed to obtain a "clear enough view" from the coalition Government on its plans with regard to the UK's corporation tax regime.

Freshfields London corporate head and Wolseley relationship partner Mark Rawlinson and corporate partner Martin Nelson-Jones advised the company on the creation of a holding company, 'New Wolseley', which will be UK-listed, incorporated in Jersey and have tax residence in Switzerland. The company says its daily operations will not be affected.

Wolseley makes 81% of its revenues abroad and the move will reduce its corporation tax from 34% to 28%.

Rawlinson (pictured) said: "As ever, we are delighted to have helped the Wolseley team on this. The markets and the media have recognised that this was all about creating value for shareholders."

Freshfields advised Wolseley on its £1bn placing and rights issue in March last year when Rawlinson took the lead alongside corporate partners Stephen Hewes and Sarah Murphy.

Freshfields is one of a number of law firms to sit on Wolseley's panel, which was last reviewed in 2008. Other advisers include Addleshaw Goddard and Eversheds in the UK, while Norton Rose is instructed on employment matters as part of the company's global panel.

Wolseley is the world's largest specialist trade distributor of plumbing and heating products to professional contractors and a supplier of business materials. Group revenue for the year ending 31 July 2010 was £13.2bn. The group employs around 47,000 staff members across 25 countries.