LKQ Corporation / Uni-Select merger inquiry
| Date | 15 June 2023 |
| Decision Date | 15 June 2023 |
| Subject Matter | Mergers |
| Court | Competition and Markets Authority (EW) |
OFFICIAL - SENSITIVE
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Anticipated acquisition by LKQ
Corporation of Uni-Select Inc.
SUMMARY OF PHASE 1 DECISION
1. The Competition and Markets Authority (CMA) has found that LKQ Corporation
(LKQ)’s anticipated acquisition of Uni-Select Inc. (Uni-Select) (the Merger) gives
rise to a realistic prospect of a substantial lessening of competition (SLC) in certain
markets within the UK. LKQ and Uni-Select are together referred to as the Parties.
2. In the UK, the Parties overlap in the supply of car parts and related garage
equipment through physical stores and online channels. LKQ, through Euro Car
Parts Limited (ECP), operates 248 stores and two distribution sites in the UK, while
Uni-Select, through GSF Car Parts (GSF), operates 179 stores and two distribution
sites in the UK.
3. The Parties primarily supply car parts to the independent motor trade (IMT), which
includes independent (or franchised) garages, workshops, car dealers and fast-fit
centres that purchase car parts to repair and service vehicles. The Parties have
both local and national or multi-regional IMT customers:
(a) The majority of IMT customers are local customers that operate one site or a
small network of sites within a single local area or region.
(b) Some IMT customers, such as national garage chains, vehicle fleets
associated with county councils or the emergency services, or specialist and
commercial fleets (collectively, known as Key Account customers) are active
on a national or multi-regional basis. These customers select suppliers
centrally, based on a range of requirements not limited to locality.
4. In addition to supplying car parts to the IMT, the Parties also supply car parts to
local retail customers and supply garage equipment (products used by garages for
the repair and maintenance of vehicles) to local IMT customers.
5. The CMA assessed the impact of the Merger in the supply of car parts to Key
Account customers nationally, to local IMT customers and to local retail customers
(each in local catchment areas). The CMA also assessed the supply of garage
equipment to local IMT customers (in local catchment areas).
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