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Inchcape’s multi-million pound takeover of European Motor Holdings will not be referred to the Competition Commission.
The Office of Fair Trading had concerns that the takeover raised competition concerns over the provision of servicing and repairs for Volkswagen cars in the Northern Welsh Marches.
Following undertakings offered by Inchcape to divest its interests in the region the OFT has decided not to pursue the matter further and will not refer the transaction to the Competition Commission.
Concerns allayed
Simon Pritchard, OFT director of mergers, said: “The loss of EMH as a competitor could have led to higher repair and servicing charges for the owners of new and nearly-new VWs in the area around Wrexham and Oswestry.
“We are content that the divestment offered by Inchcape will, when implemented, address our competition concerns.’”
Inchcape acquired EMH for £263m in December last year, adding 52 sites to its portfolio and allowing the dealer group to expand into the north of England.