CMA refers B2B used car auction merger for Phase 2 investigation
Constellation’s purchase of Aston Barclay will move to an in-depth Phase 2 investigation after the CMA identified potential competition concerns.
iStock
Constellation Developments Limited (Constellation), through its British Car Auctions (BCA) business, is the largest provider of business-to-business (B2B) used vehicle auction services in Great Britain (GB). ABVR Holdings Limited (Aston Barclay) is the third largest supplier in the same market.
BCA and Aston Barclay compete closely for similar customers across GB, both offering large-scale used vehicle auctions and having a broad geographic reach. Constellation’s acquisition of Aston Barclay significantly increases its already strong market position. Aside from one supplier, other competitors only exert a limited competitive constraint on BCA, given their smaller scale and more limited geographic coverage.
Having conducted a Phase 1 merger investigation, the Competition and Markets Authority (CMA) is concerned the merger may reduce competition, potentially leading to higher prices and/or a reduction in choice for customers using used vehicle auction services, with a subsequent impact on the prices consumers pay for used vehicles. More information about the CMA’s concerns can be found in the decision summary.
Constellation did not offer any remedies, so the CMA has therefore referred this case to an in-depth Phase 2 inquiry which will be led by an independent panel of experts.
Further information is available on the Constellation / ABVR case page.
Notes to editors:
- All enquiries from journalists should be directed to the CMA press office by email on press@cma.gov.uk or by phone on 020 3738 6460.