Regulator asks for remedy in LKQ-Uni-Select deal

The U.K. Competition and Markets Authority is requiring a remedy (known as “undertakings in lieu of reference”) in the LKQ Corporation deal for Uni-Select following its fast-track Phase 1 review process.

The competition regulator made the request to address concerns it has identified about the impact on markets in the United Kingdom.

A statement put out by Uni-Select said the two parties are reviewing the decision “and will promptly engage to formally submit a remedy proposal.” It further noted the commitment of both companies to divest of Uni‑Select’s GSF Car Parts business in the U.K. so that the deal gets clearance from the regulator.

In the U.K., Uni-Select distributes automotive parts through GSF Car Parts and has more than 175 company-operated stores.

Should all conditions be met or waived, a Q3 closing of the deal is expected.

It was announced at the end of February that a deal had been reached for LKQ to acquire Uni-Select in a deal valued at $2.8 billion. Uni-Select shareholders approved the deal in May.

In Canada, Uni-Select distributes automotive aftermarket parts and automotive refinishing products under the Bumper to Bumper, Auto Parts Plus and FinishMaster banners. In the United States, Uni-Select’s subsidiary FinishMaster has more than 145 automotive refinish company-operated stores.