Probe into £225m acquisition of vehicle salvage and dismantling business
The Competition and Markets Authority (CMA) has said today that it is investigating the completed acquisition by IAA, Inc of Doncaster-headquartered SYNETIQ Holdings Ltd.
IAA Inc, a global digital marketplace connecting vehicle buyers and sellers, confirmed last month that it was acquiring the stock of SYNETIQ through its indirect wholly owned subsidiary IAA International Holdings Limited for £225m.
Founded in 2019 from the merger of four entities, SYNETIQ provides salvage auction services for insurance companies, accident management companies, and other public and private sellers.
It is also a seller of reusable parts that are dismantled from salvage vehicles and reissued into the automotive supply chain.
An Initial Enforcement Order made by the CMA explains the regulator is considering whether the acquisition of SYNETIQ “has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom.”
The order adds that both companies must continue to operate independently until they obtain clearance from the CMA.
SYNETIQ has 14 locations and approximately 500 employees throughout the UK.
For the 12 months ended September 30, 2021, the business generated revenue of approximately £154m.
