News story: Car parts merger referred for in-depth investigation

Earlier this month, the Competition and Markets Authority (CMA) said that it would refer the deal for an in-depth investigation unless Euro Car Parts offered acceptable ways of addressing competition concerns.

Euro Car Parts has chosen not to offer these and so the merger will now be referred for an in-depth investigation by an independent group of CMA panel members (known as phase 2). The deadline for the final decision is 5 November 2017.

Both companies supply car parts to independent garages across the UK, and the CMA found that they compete closely with each other. Therefore, the CMA is concerned that the merger could substantially reduce competition in a number of local areas, as well as for some large customers that purchase car parts on a national basis. Customers could lose out if their suppliers are no longer competing with each other to offer the best deal.

The phase 2 investigation group will take a fresh look at the merger before coming to its decision.

Further information about the investigation is available on the case page.