UK’s CMA Probes Vehicle Parts Merger Over Competition Concerns

The Competition and Markets Authority (CMA) is investigating the completed acquisition of 3G Truck & Trailer Parts Limited by TVS Europe Distribution, reported the regulator in a press release.

The CMA has provisionally found that the purchase of 3G by TVS raises competition concerns in the supply of commercial vehicle and trailer parts.

Universal Components UK (Universal Components), owned by TVS Europe Distribution, and 3G Truck & Trailer Parts (3G) are 2 of the leading wholesalers of commercial vehicle and trailer parts in the UK. Both businesses are known for their broad service offering, allowing customers to buy a wide range of parts from a single supplier.

Following an in-depth Phase 2 investigation, the CMA has found that Universal Components and 3G compete closely with each other to supply replacement parts for commercial vehicles and trailers to motor factors (local distributors), who in turn sell on to independent garages and repairers in the UK. 

The CMA also found that customers seeking to purchase a wide range of parts from a single supplier would have limited alternatives after the merger. This could lead to UK motor factors facing higher costs and lower quality services, such as longer delivery times or worse stock range and quality.

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