Universal Components UK Limited (Universal Components), owned by
TVS Europe Distribution Limited, and 3G Truck & Trailer Parts
Ltd (3G) are 2 of the leading wholesalers offering a wide range
of commercial vehicle and trailer part types in the UK.
The Competition and Markets Authority (CMA) is concerned that the
loss of competition brought about by the merger could result in
their customers – motor factors (local distributors) supplying
independent garages and repairers in the UK - losing out as a
result of higher prices and a poorer service.
Evidence obtained by the CMA during its Phase 1 investigation of
the merger showed that the companies compete closely with each
other to supply customers with commercial vehicle and trailer
parts.
In particular, the merging companies’ internal documents clearly
showed that they are close rivals, and that they monitor each
other when setting prices. Wholesale customers also expressed
concerns about the impact of the deal and did not consider there
to be sufficient alternatives to Universal Components and 3G.
Universal Components and 3G must now address the CMA’s concerns
within 5 working days. If they are unable to do so, the merger
will be referred for an in-depth Phase 2 investigation.
For more information, visit the TVS Europe Distribution
Limited/ 3G Truck & Trailer Parts merger inquiry web
page.
