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:
More information can be found on the LKQ / Uni-Select case page.
Notes to Editors