CMA clears Copart/Hills Motors merger
The CMA has cleared the completed purchase of Hills Motors by Copart after an in-depth phase 2 investigation
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In May 2023, an independent Competition and Markets Authority (CMA) panel provisionally found that Copart’s completed purchase of Hills Motors had resulted, or may be expected to result, in a substantial lessening of competition in the market for the supply of salvage services in the UK. After new evidence came to light, the CMA subsequently updated its assessment, provisionally concluding, in June 2023, that the deal would not lead to competition concerns.
Copart is currently the salvage services market leader by a significant distance and faces few competitors for large national salvage contracts for insurance companies. Hills Motors, which has an in-house dismantling service and is an important supplier of recycled parts, is one of the small number of players that have been invited to compete against Copart for such contracts. The CMA ultimately found, however, that Hills Motors was not a significant competitor to Copart in these opportunities, and that there was limited competition between Copart and Hills Motors in practice.
Having considered responses to its revised provisional findings, the CMA has today confirmed that the deal does not raise competition concerns in the supply of salvage services and has now concluded that the deal should be cleared.
For more information, visit the Copart / Hills Motors case page.
Notes to editors:
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‘Copart’ refers to Copart, Inc. and ‘Hills Motors’ refers to Green Parts Specialist Holdings Ltd.
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Copart and Hills Motors both supply vehicle salvage services. This involves collecting damaged and other used vehicles on behalf of customers – including insurance companies, finance companies and rental car companies – and remarketing them for sale via online auction or, in some cases, managing their dismantling or scrapping. Hills Motors is active in vehicle dismantling whereas Copart is not.
- Interested parties had until 17h00 Friday 30 June to comment on the addendum provisional findings before a final decision was made by the independent panel of experts.
- The Copart / Hills Motors deal was referred to a phase 2 investigation in December 2022.
- For media enquiries, contact the CMA press office on 0203 738 6460 or [email protected].