The UK Competition and Markets Authority (CMA) has initiated a Phase 2 investigation into the merger between Constellation Developments Limited, through its British Car Auctions (BCA) business, and ABVR Holdings Limited (Aston Barclay). This merger is significant as BCA is the largest provider of business-to-business (B2B) used vehicle auction services in Great Britain, while Aston Barclay ranks third in the same market.

The CMA's Phase 1 investigation raised concerns that the merger could diminish competition, potentially resulting in higher prices and fewer choices for customers utilizing used vehicle auction services. This reduction in competition could also affect the prices consumers pay for used vehicles.

Constellation did not propose any remedies to address the CMA's concerns, prompting the authority to refer the case for a more detailed Phase 2 inquiry. This inquiry will be conducted by an independent panel of experts who will assess the implications of the merger on market competition.

For further details, the CMA has provided additional information on the Constellation / ABVR case page.