UK watchdog may refer $2.1 bln LKQ Corp and Uni-Select deal to deeper probe (updated)

Uni-Select

21/07/2023 11:40

(Adds details from CMA's statement throughout, background on
deal in paragraph 3)
       July 21 (Reuters) - Britain's competition regulator on
Friday said auto parts provider LKQ Corp's  LKQ.O  C$2.8 billion
($2.13 billion) deal to buy Canada's Uni-Select Inc  UNS.TO  may
be referred to a deeper investigation unless the companies offer
acceptable undertakings to address related concerns.
        The Competition and Markets Authority (CMA) has
concluded that the merger between LKQ and Uni-Select could raise
competition concerns in the supply of car parts and garage
equipment to independent garages and workshops in 145 local
areas in the UK, the regulator said in a statement. 
        The deal, which was announced in February, is expected
to help LKQ tap into the Canadian company's strong presence in
the aftermarket auto parts business.
    Uni-Select and LKQ Corp did not immediately respond to a
Reuters request for comment. 
        CMA also said that the deal could reduce competition in
the supply of car parts to retail customers in 172 local areas
in the country.
    The companies have until July 28 to respond to the
regulator, it said.  
    


($1 = 1.3164 Canadian dollars)

 (Reporting by Radhika Anilkumar in Bengaluru; Editing by
Nivedita Bhattacharjee)
 ((Radhika.Anilkumar@thomsonreuters.com;))