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’.
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.
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.”