Copart’s Takeover of Hills Motors Under CMA Scrutiny
The Competition and Markets Authority (CMA) has flagged big competition worries over Copart’s completed purchase of Hills Motors. The deal could seriously damage the UK’s vehicle salvage market, the watchdog warns.
Salvage Services Market at Risk
Both Copart and Hills Motors specialise in vehicle salvage—towing in damaged cars from insurance firms, finance companies, and rental car firms, then flipping them via online auctions or sending them for dismantling. Hills Motors also handles dismantling in-house, a service Copart doesn’t offer.
After initial concerns, the CMA launched an in-depth Phase 2 probe. Over five months, an independent panel dug into the deal, reviewing site visits, hearings, customer feedback, and internal documents from both companies to assess the merger’s true impact.
CMA Warns of Competition Squeeze
The CMA’s provisional verdict: This takeover could seriously reduce competition. Copart already dominates the salvage scene, and Hills Motors is one of the few rivals with a strong record in landing and servicing big national insurance contracts. Their union could mean less choice and potentially higher prices for customers.
On the bright side, the CMA sees no major issues around the supply of damaged vehicles or recycled parts following the deal.
Expert Panel Sounds Alarm
Kirstin Baker, chair of the CMA’s independent panel, said:
“Vehicle insurance costs heaps for individuals and businesses alike. With rising pressure on insurers to cut environmental impact while keeping costs down, the market needs strong competition. Only a handful of salvage firms can handle big national insurance contracts. This deal risks squeezing that choice, which could push up prices or force down service quality.”
“We’re now calling for feedback on our findings and potential solutions to tackle these issues.”
