ACCC concerned over AP Eager acquisition of AHG

Company News

by Jessica Amir

The ACCC has raised concerns over automotive retailer AP Eagers(ASX:APE) potentially taking over Automotive Holdings Group (AHG) (ASX:AHG).

The ACCC says, “a combined AP Eagers and AHG would operate 46 per cent of new car dealership sites in the Newcastle/Hunter Valley region, including those for the ten most popular brands.

“In metropolitan Newcastle alone, the combined company would operate 77 per cent of dealership sites selling the ten most popular brands.”

Earlier this month AHG’s (ASX:AHG) board recommended shareholders accept the fourth revised takeover offer from AP Eagers (ASX:APE) for 1 APE share for every 3.6 AHG shares.

Shares in AP Eagers (ASX:APE) are trading 2.86 per cent lower at $9.84

AHG’s (ASX:AHG) shares are trading 2.90 per cent lower at $2.68
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.