Copart / Hills Motors merger inquiry
The CMA investigated the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors).
Phase 2
Administrative timetable
Date of reference : 9 December 2022
Statutory deadline: 20 July 2023 (updated on 6.4.23)
- (updated 23.6.23)
Contact
Notice of penalty
14 December 2023: the CMA gave notice to Copart, Inc., CPRT LLP and Copart UK Limited (together, ‘Copart’) on 14 December 2023 that is has decided to impose a penalty on Copart, Inc., CPRT LLP, Copart UK Limited jointly and severally under section 94A of the Enterprise Act 2002 (the ‘Act’). The CMA found that Copart, without reasonable excuse, failed to comply in certain respects with the requirements imposed on it by the initial enforcement order issued by the CMA under section 72 of the Act on 9 August 2022 to Copart.
- (15.12.23)
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Notice of penalty
11 August 2023: The CMA has published a notice of a penalty imposed on Copart, Inc., CPRT LLP and Copart UK Limited (together, ‘Copart’) on 10 August 2023 under section 110 of the Enterprise Act 2002 (the ‘Act’). The CMA found that Copart, without reasonable excuse, failed to comply in full with the requirements imposed on it by the notice issued to Copart under section 109 of the Act on 26 April 2023.
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Final report
14 July 2023: The CMA has found that the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors) has not and may not be expected to result in a substantial lessening of competition in any markets in the UK.
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- Press release: CMA clears Copart/Hills Motors merger (14.7.23)
Responses to addendum provisional findings
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Addendum provisional findings
23 June 2023: The addendum provisional findings outlines the Group’s revisions to the provisional SLC finding in the provisional findings report in relation to the supply of salvage services in the UK. The CMA has provisionally concluded that the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors) has not and may not be expected to result in a substantial lessening of competition in the supply of salvage services in the UK.
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- Press release: New evidence changes vehicle salvage merger assessment (23.6.23)
Responses to provisional findings and possible remedies
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Provisional findings
5 May 2023: The CMA has provisionally found competition concerns as part of its in-depth investigation of the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors).
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- Press release: Merger could worsen vehicle salvage service options for UK car insurers (5.5.23)
Notice of extension of statutory period
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Directions to appoint a monitoring trustee
On 20 January 2023, pursuant to an initial enforcement order dated 9 August 2022, the CMA directed Copart, Inc to appoint a monitoring trustee.
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Response to the issues statement
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Issues statement
13 January 2023: The issues statement sets out the scope of the inquiry. It outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions. The deadline for submissions on the issues statement is 5pm on Friday 27 January 2023.
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Inquiry group appointed
9 December 2022: The CMA has appointed the inquiry group.
Kirstin Baker (Chair), Roland Green, Juliet Lazarus and Paul Muysert.
Terms of reference
9 December 2022: The CMA has referred the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors) for an in-depth investigation.
- (9.12.22)
Phase 1
Statutory timetable
| Phase 1 date | Action |
|---|---|
| 28 November 2022 | Decision announced |
| 3 October 2022 | Launch of merger inquiry |
| 3 October 2022 to 17 October 2022 | Invitation to comment |
| 9 August 2022 | Initial enforcement order |
Reference decision
9 December 2022: The CMA has referred the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors) for an in-depth investigation, on the basis that, on the information currently available to it, it is or may be the case that this merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.
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Response to phase 1 decision
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Reference unless undertakings accepted
28 November 2022: The CMA has decided, on the information currently available to it, that it is or may be the case that this merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom. This merger will be referred for a phase 2 investigation unless the parties offer acceptable undertakings to address these competition concerns.
- (4.1.23)
- (28.11.22)
- Press release: Vehicle salvage merger reduces choice and may limit access to salvage vehicles for green parts
Launch of merger inquiry
3 October 2022: The CMA announced the launch of its merger inquiry by notice to the parties.
- (3.10.22)
Invitation to comment: closed 17 October 2022
The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
To assist it with this assessment, the CMA invites comments on the transaction from any interested party.
These comments should be provided by the deadline set out above.
Initial enforcement order
9 August 2022: The Competition and Markets Authority has served an initial enforcement order under section 72 (2) of the Enterprise Act 2002 on Copart, Inc., CPRT LLP, Copart UK Limited and Green Parts Specialist Holdings Ltd.
- (10.8.22)
Last updated 19 January 2024 + show all updates
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Case closed
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Full penalty notice published
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Penalty notice summary published.
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Notice of penalty published.
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Case closed
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Third party responses published.
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Addendum provisional findings and updated administrative timetable published.
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Responses to provisional findings published.
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Third party responses published.
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Full provisional findings and appendices published
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Summary of provisional findings, notice of provisional findings and notice of possible remedies published
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Notice of extension and revised admin table added.
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Parties’ response to phase 1 decision, and parties’ response to issues statement published.
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Directions to appoint a monitoring trustee published.
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Issue statement published
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Phase 1 full text decision published to the page.
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Phase 2 Administrative timetable published.
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Administrative timetable and inquiry group appointment published.
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Reference decision and terms of reference published.
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Summary of phase 1 decision published.
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Launch of merger investigation and commencement notice published.
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First published.