The Competition and Markets Authority (CMA) in the United Kingdom yesterday detailed concerns it has with LKQ Corporation subsidiary, Euro Car Parts’ October 2016 acquisition of competitor Andrew Page.
Both companies sell car parts and components to independent repair facilities and to larger national or multi-regional customers, including repair centre chains, vehicle fleets and roadside assistance companies.
A group of independent panel members at the CMA has investigated the merger. The group identified 10 local areas in England where the two companies were close competitors and where the merger could result in reduced competition for local customers, leading to higher prices or a lower quality of service. The group did not consider that national or multi-regional customers would be adversely affected by the merger.
“Andrew Page was in administration and would have closed down if a purchaser had not been found. The only two other purchasers would have bought a much smaller number of depots. We think that in most markets the merger will not further reduce competition compared to the alternative,” said Professor Alasdair Smith, Inquiry Chair. “However, in 10 local areas we are concerned that a reduction in competition could lead to higher prices and a lower quality of service.”
The report is the result of the in-depth inquiry the CMA announced earlier in the year and announced that it would refer the deal for an in-depth investigation unless Euro Car Parts offered acceptable ways of addressing competition concerns.
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out their website at: www.collisionweek.com.