At the start of June, the ACCC decided to move Peter Warren Automotive Holdings’ proposed acquisition of the Wakeling Automotive Group to a Phase 2 merger review under the new mandatory merger control regime.
What happened?
On 5 March 2026, ASX-listed Peter Warren (ASX: PWR) notified the ACCC of its proposed acquisition of 30 Wakeling dealership sites across Greater Sydney, Wollongong and the Southern Highlands.
On 2 June 2026, the ACCC published its decision that the transaction must proceed to Phase 2 review as it considers that the acquisition could substantially lessen competition in the Macarthur region of south-west Sydney.
Why is the ACCC concerned?
The ACCC’s main concern is that the acquisition would combine the two largest dealership groups operating in the Macarthur region.
According to the ACCC’s Phase 2 Notice, with the acquisition, Peter Warren would control 25 of the 33 dealership sites in the region. The ACCC considers Wakeling Automotive to be Peter Warren’s closest competitor and on that basis, is concerned that the removal of this close competitive constraint could substantially lessen competition in the region.
Why does this matter?
The decision has potential implications for industries beyond automotive dealerships because:
- it provides an early indication that under the new regime, the ACCC is likely to look closely at local competitive dynamics and the impact of customer catchment areas
- the ACCC’s increased willingness to treat aftersales services, including servicing and repairs, as a distinct area of competition capable of independently raising merger concerns, suggests that sales and aftercare may treated as separate segments in future assessments. This means that even if an up-front sales market is considered competitive, the corresponding after-sales market may not be
- indications are that the ACCC may be less willing to accept that inter-brand competition or online sales channels are sufficient to offset concerns arising from high levels of local market concentration.
What does this mean?
The ACCC’s decision signals that local acquisitions are likely to be closely scrutinised under the new merger regime, and that:
- inter-brand competition and online sales channels may not be sufficient to offset local competition concerns
- aftersales may be treated as a separate category for competition purposes
To address these developments, consider competition issues and engage with the ACCC early in the transaction process and model transactions in various ways, including with aftersales as a distinct category. Ensure notifications to ACCC are supported by clear evidence on market dynamics, customer behaviour and competitive constraints and consider the extent to which brand competition and online sales are raised as mitigating factors.
