Towbars merger abandoned
The CMA notes the announcement that Horizon Global Corporation has abandoned its intended purchase of Brink International B.V.
The abandonment of the transaction follows a CMA phase 1 investigation finding that the merger, between two of the largest towbar companies in Europe, could damage competition in the UK.
The CMA’s investigation found that the companies together control a large share of all towbar supply to car manufacturers operating throughout the UK and Europe.
During its investigation, the CMA worked closely with the German competition authority, the Bundeskartellamt, which was conducting its own investigation into whether the merger could damage competition in Germany.
They exchanged information and analysis on the competition issues that each were investigating, and ultimately reached a similar view about the harmful impact that the transaction could have on towbar supply to car manufacturers within Europe. The two authorities also held discussions on the feasibility of possible remedies to address the concerns that each had identified.
While at this stage of the UK investigation the companies had the option to address the CMA’s concerns, or proceed to a more in-depth ‘phase 2’ investigation, they have now agreed to abandon the transaction.
More information can be found on the Horizon Global Corporation / Brink International B.V. case page.