The Competition and Markets Authority (CMA) has published responses to its provisional findings in the proposed acquisition of Hills Salvage and Recycling by Copart UK.
The CMA launched an investigation into the proposed deal after fearing it could result in a reduction in competition in the vehicle salvage and spare parts sectors.
However, a response has now been published, stating: “The CMA’s conclusions disregard the clear and overwhelming evidence of customers. Not one Copart customer identified Hills Motors as an alternative salvager which could meet their requirements. Not one customer considered Copart and Hills Motors as close competitors. Not one customer expressed any concerns about this merger, and 12 of these 16 customers explicitly expressed positive views.”
The CMA has stated that its concern is future-based, suggesting that while the two may not be direct competitors now they could become so in the future if Hills continues to grow, which could have a negative impact on customers.
The response said, “Customer responses not only indicate a lack of concerns about the merger but also underline customer benefits. This merger was driven by customers. The vertical integration achieved by the merger will provide customers with significant benefits, particularly environmental ones.”
The statutory deadline is 20 July.
