Automotive Holdings Group Limited - s.87B undertaking

On 18 February 2016, the ACCC announced it had accepted an undertaking (the Undertaking) from Automotive Holdings Group Limited (AHG) in relation to GPC Asia Pacific Pty Ltd’s (GPC) proposed acquisition of most of the Covs Parts business from AHG, including 21 of the 25 Covs Parts stores.

AHG and GPC had originally contracted to acquire all 25 Covs Parts stores (Original Proposed Acquisition). However, the transaction structure was changed to address the ACCC’s competition concerns. Under the revised structure, AHG would retain the stores in Albany, Esperance, Karratha and Port Hedland (Retained Stores).

The Undertaking requires that AHG retain and operate each of the Retained Stores as a going concern, in the ordinary course of business, and in substantially the same manner as at the execution date of the Undertaking.

The ACCC considered that the Original Proposed Acquisition would have had the effect, or have been likely to have the effect, of substantially lessening competition in relation to the supply of automotive parts to trade customers in a number of local markets in Western Australia.