Trade Me’s deal with Motorcentral declined

Company News

by Rachael Jones

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 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.