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
Timeline
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Applications
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| Supplementary Statement | ||
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Other
Decisions
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| Determination |