The Competition and Markets Authority (CMA) has today
cleared Constellation Developments Limited
(Constellation)'s deal – through its British Car
Auctions (BCA) business – to buy ABVR Holdings
Limited (Aston Barclay), following an in-depth phase 2
investigation led by an independent inquiry
group.
BCA and Aston Barclay both offer used vehicle auction services to
large national business vendors and buyers.
The clearance comes after the inquiry
group investigated concerns that the deal could reduce
competition in the UK.
When investigating a merger, the CMA compares its effects
with what would likely happen if the
merger did not go ahead. In this case, having conducted a
thorough investigation, the inquiry group found
that if the deal had not gone ahead, the most
likely outcome would have been that Aston
Barclay would close and some of
its assets would be
sold to buyer(s) that would not be able to
compete closely with BCA for large national vendors.
This means that, with or without the merger, the
competitive pressure exerted on BCA by Aston Barclay would be
lost.
The inquiry group
has therefore decided that the deal
should be allowed to proceed.
Cyrus Mehta, chair of the independent inquiry group, said:
Having reviewed a wide range of evidence, including the
likely impact on Aston Barclay's business if the
deal did not go ahead, we have
found that
this deal does not substantially reduce competition.
For more information, visit the Constellation /
ABVR merger inquiry page.
Notes to editors:
-
Today's decision marks the end of the CMA's
investigation.
-
Constellation Developments Limited (Constellation), through
its British Car Auctions (BCA) business, is the largest
provider of business-to-business (B2B) used vehicle auction
services in Great Britain (GB). ABVR Holdings Limited (Aston
Barclay) is the third largest supplier in the same
market.
