AP Eagers off loads Hunter Car Yards
KLOSTER Motor Group owner AP Eagers has sold dealerships in Newcastle and the Hunter Valley in a $53 million deal to ease the competition watchdog's concerns about its proposed $2.3 billion merger with car dealer Automotive Holdings Group (AHG).
The company struck an agreement to sell the Kloster Motor Group to family-owned Tony White Group, which operates 40 car dealerships across the eastern states.
The Australian Competition and Consumer Commission (ACCC) on June 24 said it had “preliminary concerns” about AP Eagers’ proposed $2.3 billion buyout of Automotive Holdings Group because of the impact on car retailing in the Newcastle and Hunter Valley region.
In the Hunter, Eagers and AHG had the two largest networks of dealerships, owning 36 of 78 Hunter dealerships, giving them 46 per cent of the market. For the top 10 brands, the ACCC says the two companies own 54 per cent of the dealerships across the region, while in metropolitan Newcastle, they operate 17 of the top 22 dealerships, giving them 77 per cent of the market.
The deal with Tony White Group allowed the AP Eagers & AHG merger to proceed.
The properties include;
190 - 194, 198 New England Hwy Rutherford NSW
12 Albert St Wickham NSW
28 Tudor St Hamilton East NSW
14-16 Tudor St Hamilton East NSW
33-35 Tudor St Hamilton East NSW
53 Tudor St Hamilton East NSW
185 Adelaide St Raymond Terrace NSW