On 13 January 2023, the Competition and Markets Authority (CMA) published an issues statement as part of its Phase 2 investigation into the completed acquisition by Copart, Inc. of Green Parts Specialist Holdings Ltd (Hills Motors).
The issues statement sets out the scope of the inquiry. It outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions.
According to the issues statement:
- In exercise of its duty under section 35(1) of the Act, the CMA must decide:
(a) whether a relevant merger situation has been created; and
(b) if so, whether the creation of that relevant merger situation has resulted, or may be expected to result, in a substantial lessening of competition (SLC) within any market or markets in the United Kingdom (UK) for goods or services.
The purpose of the issues statement is to set out the main issues the CMA are likely to consider in reaching a decision on the SLC question (2(b) above), taking into account the evidence available to the CMA to date, including the evidence obtained in the CMA’s phase 1 investigation, and further evidence that will be obtained during the phase 2 investigation. This does not preclude the consideration of any other issues which may be identified during the course of the CMA’s investigation.
The deadline for submissions on the issues statement is 5 pm on Friday 27 January 2023.
Click here to read the issues statement