New Zealand’s Trade Me’s (ASX:TME) acquisition of Christchurch software firm Motorcentral has been declined.
It has been blocked by the competition watchdog.
Motorcentral sells software – it’s a cloud-based dealer management platform for car dealers.
The purchase was always subject to approval from the Commerce Commission. But this morning they announced it has rejected the deal .
The merger would have combined Trade Me Motors and the largest dealer of management software, potentially creating barriers for dealers who do not use this software. Also there were concerns Motorcentral could create barriers for dealers wanting to advertise on rival websites.
Shares in Trade Me(ASX:TME) are trading 0.74 per cent higher at $4.06