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Solera’s acquisition of Autodata faces an in-depth merger probe, unless it offers acceptable ways of addressing competition concerns.

The companies both supply vehicle maintenance and repair information platforms across the UK and the Competition and Markets Authority’s (CMA) initial investigation found that they are the 2 main suppliers of these platforms in the UK and compete closely with each other.

These platforms give access to digital data and are mainly used by workshops and other repairers for the purposes of diagnosing, servicing and repairing vehicles. The CMA found that the merged company would face very limited competition in the UK and that there are significant barriers to entry and expansion for other suppliers.

The CMA therefore believes that the merger could significantly reduce competition in the supply of these platforms on a national basis.

Solera Holdings Inc. (Solera) therefore has until 24 May to offer proposals to resolve the competition concerns. If it does not offer undertakings, or if the CMA is unable to accept undertakings offered, the merger will be referred for an in-depth phase 2 investigation.

All information relating to the investigation is available on the case page.