Summary

A.P. Eagers Limited (AP Eagers) sought merger authorisation for its proposed acquisition of all of the shares of Automotive Holdings Group Limited (AHG) that it did not already own (proposed acquisition).

AP Eagers and AHG both supply new and used cars, trucks and buses, as well as associated products and services such as car repair and servicing, authorised car parts, insurance and finance in various parts of Australia, including Brisbane, Melbourne, Sydney and the Newcastle/Hunter Valley region of New South Wales.

On 24 June 2019, the ACCC released a market feedback letter summarising issues raised by interested parties and setting out the preliminary views of the ACCC.  The ACCC’s preliminary view was that the proposed acquisition was likely to substantially lessen competition in the retail supply of new cars in the Newcastle and Hunter Valley region. 

To address the ACCC’s competition concerns, AP Eagers offered a court enforceable undertaking pursuant to section 87B of the Competition and Consumer Act 2010 to divest its existing new car retailing dealerships and related business sites in the Newcastle and Hunter Valley region. 

The ACCC accepted AP Eagers’ divestiture undertaking on 24 July 2019.

On 25 July 2019 the ACCC issued a determination granting conditional authorisation of the proposed acquisition for 12 months until 16 August 2020.  Authorisation is conditional on AP Eagers complying with the undertaking to divest provided at Attachment A to the Determination (and below).

The ACCC’s Determination is available, below. 

Applicant(s)

  • AP Eagers Limited

Target(s)

  • Automotive Holdings Group Limited

Authorisation number(s)

  • MA1000018-1

Timeline

Date Event

Applications

Decisions

Document title Date
Determination

Submissions

Document title Date
A commercial vehicle dealership in Victoria
Fennessy's in response to draft divestiture undertaking proposed by Applicant
An automotive retailer who operates within the Newcastle / Hunter Valley Region
Applicant - submission in response to ACCC Market Feedback Letter
A former dealership owner
Kia Motors Australia
A new car retailer in the Newcastle Hunter Valley region
Jaguar Land Rover Australia
Mitsubishi Motors Australia
Federal Chamber of Automotive Industries
Suttons Motors
An independent authorised motor dealer in the Hunter Valley region
Toyota Corporation Australia
Europcar
An original equipment manufacturer and importer
Hyundai Motor Company Australia
Automotive retailer who operates within the Newcastle / Hunter Valley Region
Honda Australia
Motor Traders' Association of NSW
AHG – passenger car and truck dealerships and brands in Australia
Automotive Holdings Group
Jaguar Land Rover Australia
Victorian Automobile Chamber of Commerce (VACC)
Fennessy's
Suzuki
Applicant response to ACCC letter dated 10 May 2019
Australian Automotive Aftermarket Association
A Motor Dealer in Queensland
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