Copart merger to get Phase Two CMA investigation

The Competition and Markets Authority has confirmed that it is to open ‘Phase Two’ of an investigation in to salvage auctioneer Copart’s plans to merge car breaker Hills Motors into its business.

The initial phase of the investigation announced in late November concluded that allowing the takeover to go ahead would ‘reduce competition the market’.

File photo of Hills’ Skelmersdale site arranging a patriotic display ahead of the 2018 World Cup

However, Copart has made a representation to the CMA, meaning the regulator will now conduct a more in-depth analysis of the deal and the surrounding market conditions. These second stage investigations are often lengthly and expensive for all concerned.

READ: CMA blocks Hills Motors takeover by Copart

Commenting immediately after the initial CMA decision, Jane Pocock, CEO, Copart UK and Ireland, said: “We acknowledge that the CMA is seeking further details on our acquisition of Hills Motors. We recognise the need for the CMA to understand our approach in more depth given the importance to our customers and the market.”

READ: BREAKING: ECP/ANDREW PAGE CMA FINAL REPORT PUBLISHED

“Hills will continue to bid and buy on the Copart auction platform in the normal way and continue to provide the successful green parts service they have established.”

READ: CMA Block Exemption Recommendations: IAAF response

“We look forward to participating fully in the process and demonstrating that this transaction will provide another pro-competitive solution to the market. We remain totally committed to giving our customers the depth and breadth of service they ask of Copart and are confident of a positive outcome.”