REG - Competition and Mkts - Merger Update

RB GlobalAnnouncement

18/03/2022 15:15

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RNS Number : 3198F  Competition and Markets Authority  18 March 2022

 

Ritchie Bros and Euro Auctions deal referred for an in-depth investigation

 

The CMA has referred Ritchie Bros' planned purchase of Euro Auctions for an
in-depth Phase 2 investigation, after finding competition concerns.

 

Ritchie Bros and Euro Auctions are both auction service providers for used
heavy equipment in the UK. During its initial investigation, the Competition
and Markets Authority (CMA) found that the companies have a very high market
share in the supply of auction services for heavy construction machinery, with
Euro Auctions being the clear market leader and Ritchie Bros the second
largest provider.

 

The CMA also found that other auction providers were significantly smaller and
other methods of sale (for example, marketplaces, listing websites and
dealers) did not compete with the companies on any meaningful level. The CMA
is therefore concerned that, if completed, the proposed deal could lead to a
reduction in competition in the UK market, which could result in higher prices
for the companies' customers and a lower quality service.

The firms offered undertakings to address the CMA's competition concerns.
However, the CMA does not believe that the proposals would effectively address
the competition concerns identified.

 David Stewart, CMA Executive Director, said:

 

"Many businesses across the UK rely on Ritchie Bros and Euro Auctions to buy
and sell heavy construction machinery in the UK. This merger would combine the
two largest auction providers in this sector, risking higher commissions and
lower service quality.

 

"We are not satisfied that the proposed undertakings from Ritchie Bros would
fully address these concerns, which is why we are moving on to an in-depth
Phase 2 investigation."

 

For more information, visit the Ritchie Bros / Euro Auctions
(https://www.gov.uk/cma-cases/ritchie-bros-auctioneers-incorporated-slash-euro-auctions-group-merger-inquiry)
case page.

 

 

Notes to Editors

 

1.  Any questions about how the CMA's decision affects the timeline for the
deal should be directed to Ritchie Bros and Euro Auctions.

 

2. All media enquiries should be directed to the CMA press office by email
on press@cma.gov.uk (mailto:press@cma.gov.uk) , or by phone on 020 3738
6460.

 

 

 

 

 

 

 

 

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