In May 2023, an independent Competition and Markets Authority (CMA) panel provisionally found that Copart's completed purchase of Hills Motors had resulted, or may be expected to result, in a substantial lessening of competition in the market for the supply of salvage services in the UK. After new evidence came to light, the CMA subsequently updated its assessment, provisionally concluding, in June 2023, that the deal would not lead to competition concerns.
Copart is currently the salvage services market leader by a significant distance and faces few competitors for large national salvage contracts for insurance companies. Hills Motors, which has an in-house dismantling service and is an important supplier of recycled parts, is one of the small number of players that have been invited to compete against Copart for such contracts. The CMA ultimately found, however, that Hills Motors was not a significant competitor to Copart in these opportunities, and that there was limited competition between Copart and Hills Motors in practice.
Having considered responses to its revised provisional findings, the CMA has today confirmed that the deal does not raise competition concerns in the supply of salvage services and has now concluded that the deal should be cleared.
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