Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

ACCC Gives The Green Light For The AP Eagers (ASX:APE) And (ASX:AHG) Merger

The Australian Competition and Consumer Commission (ACCC) has given the go ahead for the merger between AP Eagers Ltd (ASX: APE) and Automotive Holdings Group Ltd (ASX: AHG).

A.P. Eagers is Australia’s oldest listed automotive retail group, it has been going for over a century. It operates automotive dealerships across Queensland, South Australia, New South Wales, Victoria, Northern Territory and Tasmania. It has over 4,500 employees.

Car Dealership Merger Given The Go Ahead

The ACCC has conditionally authorised AP Eagers to acquire AHG following the commitment of AP Eagers to sell its existing car dealerships in the Newcastle and Hunter Valley region to a third party.

The Newcastle and Hunter Valley region was the only concern that the ACCC had – it didn’t think there was a problem nationally or in Melbourne, Sydney and Brisbane where there is sufficient competition from other dealerships and suppliers.

ACCC Commissioner Stephen Ridgeway said: “We were concerned that a combined AP Eagers and AHG would own about half of the 78 dealerships in the Newcastle and Hunter Valley region, and in metropolitan Newcastle, about three quarters of the dealerships that sell the top ten car brands.

If we had allowed AP Eagers to combine its dealerships with AHG’s in this region, the competition in that market may have meant consumers would pay more for new cars.”

What Does This Mean For AP Eagers?

Well, the AP Eagers share price has risen 0.4% in early trade in response to the news. The company get back to planning the $13.5 million of synergies that is expected to come from combining the two businesses, although this figure may be a little lower without the divested Newcastle & Hunter Valley business.

AP Eagers CEO Martin Ward said: “We encourage any AHG shareholders who are yet to accept our offer to do so in order to participate in the scale and synergy benefits afforded by the merger and any dividends approved by the AP Eagers board before the end of the offer period.”

The merger is obviously a good thing for AP Eagers, or else it wouldn’t be doing it. However I’m not sure about the long term prospects of car dealerships with automated cars expected in the coming years. I’d rather invest in the reliable businesses in the free report below for my portfolio.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content