UK Regulator Breaks Up Motor Parts Merger

The CMA will require TVS Europe Distribution to sell 3G in order to protect competition in the commercial vehicle and trailer parts sector.

The CMA will require TVS Europe Distribution to sell 3G in order to protect competition in the commercial vehicle and trailer parts sector.

Following an in-depth Phase 2 investigation, the Competition and Markets Authority (CMA) has concluded that TVS Europe Distribution Limited, which owns Universal Components UK Limited (Universal Components), must sell the competing 3G Truck & Trailer Parts Ltd (3G) business it purchased in February 2020.

In its final report the CMA found that Universal Components and 3G currently compete closely to supply replacement parts for commercial vehicles and trailers to motor factors (local distributors), who in turn sell on to independent garages and repairers in the UK.

After the merger, customers seeking to purchase a wide range of parts from a single supplier would likely have limited alternatives to choose from. This could lead to local distributors and repairers facing higher costs and poorer service, such as longer delivery times or worse stock range and quality.

In reaching its decision, the CMA analysed a significant body of evidence looking at how closely the 2 businesses compete, including the companies’ internal documents and feedback from customers and competitors.

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