A car retail giant has been given the green light to acquire a major competitor after agreeing to offload eight dealerships to address competition concerns.
More than nine months after first announcing its plans to purchase Wakeling Automotive Group, motoring heavyweight Peter Warren’s proposal has been approved.
The Australian Competition and Consumer Commission waved through the $28 million deal after Peter Warren Automotive Holdings agreed to sell off eight dealerships in the Macarthur region.
The watchdog found the proposed acquisition could have significantly reduced competition in car supply, servicing and repairs across Sydney’s Macarthur region.
Without the conditions, Peter Warren would have operated 25 of the 34 car dealerships in the region, ACCC Commissioner Philip Williams said.
“To address our concerns, Peter Warren offered to divest eight car dealerships in the local area,” he said.
The eight sites are located in Campbelltown and Smeaton Grange and represent Kia, GMSV, RAM, Isuzu UTE, GAC, Volkswagen and Suzuki.
The two automotive groups both operate new car dealerships around Campbelltown, Narellan and Smeaton Grange, with their businesses also offering vehicle servicing and repairs.
Mr Williams said the ACCC’s new merger regime allowed the watchdog to approve takeovers subject to conditions where they could address competition concerns.
The deal had been under scrutiny since Peter Warren first notified the ACCC of the Phase 1 proposal in March.
On June 2, the ACCC determined the transaction should undergo a Phase 2 review.
That review was discontinued on June 15 following a written request from Peter Warren.
The company subsequently submitted the notification to take over Wakeling on July 13, accompanied by its offer to offload eight sites.
Under Australia’s new merger control regime, which came into effect in January, businesses must notify the ACCC of acquisitions that meet prescribed thresholds and wait for approval before proceeding.
Peter Warren operates more than 80 dealerships across 25 locations along Australia’s east coast and represents more than 30 vehicle brands.
Wakeling Automotive operates 30 dealerships at eight locations across Greater Sydney, Wollongong and the Southern Highlands.
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