The European Commission has granted clearance to the proposed purchase of UK car repair chain Kwik Fit by CVC Capital Partners. The operation does not create any competition concerns as there are no significant overlaps between Kwik Fit and CVC Capital Partners-owned companies.
Ford sold Kwik Fit to CVC Capital Partners for GBP330 million at a considerable discount to the GBP1 billion it paid for the business in 1999. This is CVC Capital Partner’s second recent acquisition of a company involved in the motor trade, following its purchase of Halfords in August this year for EURO665 million. CVC Capital Partners is considering merging the business with Halfords, which received clearance from the European Commission on August 27.
CVC Capital Partners also owns another company, the Dutton-Forshaw Group of dealerships, which is active in the maintenance of motor vehicles. There are, however, no significant overlaps between the maintenance activities of the Dutton-Forshaw group and those of Kwik Fit. The Commission has therefore concluded that the proposed transaction is compatible with the Common Market and with the European Economic Area Agreement.