The Competition and Markets Authority (CMA) has cleared the Constellation Developments deal to buy ABVR Holdings through its British Car Auctions (BCA) business.

The confirmation follows a phase two investigation by the competitions regulator which was led by an independent inquiry group.

BCA and Aston Barclay both offer used vehicle auction services to large national business vendors and buyers. The CMA’s clearance comes after the inquiry group had investigated concerns that the deal could reduce competition in the UK.

When investigating a merger, the CMA compares its effects with what would likely happen if the merger did not go ahead. In this case, having conducted a thorough investigation, the inquiry group found that if the deal hadn’t gone ahead, the most likely outcome would have been that Aston Barclay would close, and some of its assets sold to buyers that would not be able to compete with BCA for large national vendors.

This means that, with or without the merger, the competitive pressure exerted on BCA by Aston Barclay would be lost.

The inquiry group has therefore decided that the deal should be allowed to proceed.

Chair of the independent inquiry group, Cyrus Mehta, said: “Having reviewed a wide range of evidence, including the likely impact on Aston Barclay’s business if the deal did not go ahead, we have found that this deal does not substantially reduce competition.”

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