Queensland-based car dealer AP Eagers claims its is well advanced in addressing issues identified by the competition regulator with its proposed takeover of Automotive Holdings Group.
The deal hit a hurdle June 24 with the Australian Competition and Consumer Commission (ACCC) expressing concerns about the merged entity’s dominance in a region of New South Wales.
ACCC Deputy Chair Delia Rickard said a combined AP Eagers and AHG would operate 46% of new car dealership sites in the Newcastle/Hunter Valley region, including those for the ten most popular brands, and would run 54% of the dealerships selling those brands.
“In metropolitan Newcastle alone, the combined company would operate 77% of dealership sites selling the ten most popular brands,” she said.
The ACCC is seeking further feedback from market participants about the proposed transaction, particularly those in the Newcastle/Hunter Valley region.
Full Content: Financial Review
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