Euro Auctions and Ritchie Bros. merger scrapped
03 May 2022
The merger between UK construction equipment auctioneer Euro Auctions and Canada-based Ritchie Bros Auctioneers has officially been scrapped, following the UK Competitions and Markets Authority’s (CMA) decision to launch a Phase II investigation into how the merger would affect competition in the wider market.
Northern Ireland-based Euro Auctions said Ritchie Bros decided not proceed with the Phase II investigation as it believes “there is no realistic prospect for approval by the CMA”.
“As a result, the anticipated transaction between Euro Auctions and Ritchie Bros. will not be concluded.”
The two equipment auction specialists originally agreed the merger – reported to be worth around £775 million – in August 2021.
However, the CMA raised “concerns” during Phase I of the acquisition process and, following the rejection of a subsequent remedy proposed by Ritchie Bros and Euro Auctions, the authority opted to move to a Phase II investigation.
Ann Fandozzi, the company’s Chief Executive Officer, said, “We are disappointed by the decision taken by the CMA to refer the proposed acquisition to a Phase 2 review and respectfully disagree with their views.”
“While we believe the proposed acquisition would have accelerated our strategy, we remain committed to forging ahead in our transformational journey to become the trusted global marketplace for insights, services and transaction solutions.”
In a statement, Euro Auctions thanked “its customers and suppliers and in particular its employees for their continued loyalty”.
Derek Keys, Euro Auctions Founder and Director, said, “We believe that Euro Auctions unreserved model provides our customers with an honest and transparent way to buy and sell heavy equipment globally supported by best in class service from our highly experienced staff.
“We look forward to accelerating the growth of the Euro Auctions business as an independent global operator.”