REG - Competition and Mkts - Merger Update: LKQ / Uni-Select
21/07/2023 13:00
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230721:nRSU8303Ga&default-theme=true RNS Number : 8303G Competition and Markets Authority 21 July 2023 Solutions offered to address CMA concerns in car parts deal For immediate release - Friday 21 July The CMA has concluded that LKQ's anticipated purchase of Uni-Select could raise competition concerns in the supply of car parts and garage equipment. A fast-track Phase 1 investigation by the Competition and Markets Authority (CMA) has confirmed that LKQ Corporation (LKQ)'s purchase of Uni-Select Inc. (Uni-Select) could raise competition concerns in the UK. LKQ, through Euro Car Parts, and Uni-Select, through GSF Car Parts, operate over 400 depots between them in the UK. The companies supply car parts to independent garages and workshops and to larger national or regional customers, such as repair centre chains, vehicle fleets and roadside assistance companies. The CMA's investigation found that the merger could reduce competition in the supply of car parts, as well as garage equipment, to independent garages and workshops in 145 local areas and the supply of car parts to national and multi-regional customers across the UK. The CMA also found that competition could be reduced in the supply of car parts to retail customers in 172 local areas. The merging businesses conceded that the deal could lead to a significant lessening of competition in these areas and have submitted a divestment proposal to restore the competition that would otherwise be lost in the UK as a result of the deal. Sorcha O'Carroll, CMA Senior Director of Mergers, said: "Drivers have already been paying 6 pence per litre more for their fuel than they would usually expect to. We are concerned that this transaction could further increase costs to people and businesses. "Early on, we identified that this deal could lead to higher prices and worse choice for customers across the UK. We will now carefully consider the proposal put forward by LKQ and Uni-Select which they believe could address our concerns, before deciding on the next step." More information can be found on the LKQ / Uni-Select case page (https://www.gov.uk/cma-cases/lkq-corporation-slash-uni-select-merger-inquiry) . Notes to editors: 1. The CMA is required to issue a Phase 1 decision within 40 working days. Using the 'fast track' procedure has allowed the CMA to conclude its Phase 1 investigation within 26 working days of launch, well ahead of the 40 working day deadline for initial merger decisions. 2. Merging parties are required to formally offer proposed remedies (undertakings in lieu (UILs)) within 5 working days after receiving the CMA's Phase 1 decision and the CMA then decides, within 10 working days after the Phase 1 decision, whether to provisionally accept the UILs offered. The CMA then has 50 working days (subject to an extension of up to 40 working days) to consider whether to finally accept these remedies. 3. More information on the CMA's fast track procedure can be found in section 7 of Mergers: Guidance on the CMA's jurisdiction and procedure (https://www.gov.uk/government/publications/mergers-guidance-on-the-cmas-jurisdiction-and-procedure) . 4. LKQ is a US-headquartered company listed on NASDAQ. It has global business divisions in North America (the US and Canada) and Europe. 5. Uni-Select is a Canadian-headquartered company listed on the Toronto Stock Exchange. It operates primarily in the US, Canada and the UK. 6. LKQ entered into an agreement with Uni-Select to acquire all of its outstanding shares in February 2023. 7. All media enquiries should be directed to the CMA press office by email at press@cma.gov.uk, or by phone on 020 3738 6460. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END MERUAORRONUBUAR