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Be the first with the news that moves the market- LKQ Corp.’s (NASDAQ:LKQ) C$2.8-billion deal to buy Uni-Select Inc. (TSX:UNS) may be referred to a deeper investigation
- The U.K. Competition and Markets Authority said the companies must provide acceptable undertakings to address related concerns about the impact on markets in the United Kingdom
- The acquisition would allow LKQ to build a significant presence in Québec, including Uni-Select’s Boucherville, Québec, head office
- Uni-Select Inc. opened trading at C$47.09 and LKQ Corp. opened trading at C$75.49 per share
LKQ Corp.’s (NASDAQ:LKQ) C$2.8 billion deal to buy Uni-Select Inc. (TSX:UNS) may be referred to a deeper investigation.
That comes from Britain’s competition regulator, the U.K. Competition and Markets Authority, which said the companies must provide acceptable undertakings to address related concerns. The regulator has required a remedy, known as “undertakings in lieu of reference” in order to address concerns it has identified about the impact on markets in the United Kingdom.
Auto parts provider LKQ Corp. announced its acquisition of Uni-Select earlier this year.
Both companies are currently reviewing the regulator’s decision and intend to formally submit a remedy proposal to the U.K. Subject to the procedure outlined in the arrangement agreement, LKQ plans to commit to the divestiture of Uni‑Select’s GSF Car Parts business in the U.K., in order to receive the clearance from the Competition and Markets Authority.
The arrangement remains subject to certain closing conditions, including the receipt of clearance from the regulator. If successful, it is anticipated that the arrangement will be completed during Q3 2023.
The acquisition would allow LKQ to build a significant presence in Québec, including Uni-Select’s Boucherville, Québec, head office, expanding upon LKQ’s existing business operations in that province.
While LKQ Corp. is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, Uni-Select is a leader in the distribution of automotive refinish and industrial coatings and related products in North America.
Uni-Select Inc. opened trading at C$47.09, and LKQ Corp. opened trading at C$75.49 per share.
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