OFT delay will dent profits, says JCT600

BRADFORD car dealership JCT600 has welcomed the Office of Fair Trading’s (OFT) decision to clear its acquisition of The Gilder Group.

However, chief executive John Tordoff has admitted that the preliminary investigation, which started in June, has delayed the integration of the groups, denting profits.

JCT600 struck the deal in March, agreeing to pay an undisclosed eight figure sum for the Sheffield-based business which as annual sales of £200m.

The deal included nine of Gilder Group’s car and commercial vehicle dealerships taking JCT600’s total to 47 and increasing staff numbers by 450 to 1,800. Earlier this month the OFT said it would not be referring the case to the Competition Commission.

In a statement Mr Tordoff said: “Although it was no surprise to us or our advisers, it’s nevertheless good news that the regulator has now agreed that the deal did not result in a decrease in competition within the car dealership markets. We were always confident of a positive outcome, although co-operating with the OFT process has hampered our planned integration of the two businesses.

“This delay in bringing about operating efficiencies will inevitably hit the bottom line, but we’re glad to be able to put the matter behind us and look to the future. We are already actively integrating the former Gilder businesses, and we are now able to again focus on our strategy of seeking new acquisition opportunities to further strengthen the JCT600 group.”