UPDATED
Higher prices, less choice and worse services for motorcyclists across the UK – those were the fears that the Competition and Markets Authority (CMA) outlined in its Phase 1 investigation into the merger of Ardonagh Group Limited and Bennetts Motorcycling Services Limited in August. Now, the mega merger is to be reversed.
The CMA has this morning confirmed it has accepted a proposal from Ardonagh, the name behind both Swinton and Carole Nash, to unwind the £26 million deal to resolve its concerns. The two leading distributors of motorcycle insurance in the UK will now part company – with Ardonagh offering to sell Bennetts, in order to reverse the deal completely.
In a statement, the watchdog outlined that the move should, “in principle, be capable of remedying the competition concerns” identified and that it will now consider the detailed aspects of the proposed remedy. Should that proposal be accepted, Ardonagh will then have a fixed period within which to sell Bennetts to a CMA-approved purchaser.
A deadline of November 25, 2020 has been set for the CMA to make its final decision on whether to accept the proposal – it will also consult publicly on the details in the weeks to come.
In addition, Ardonagh Group issued its own statement confirming its proposal to divest the Bennetts business, noting that its subsidiary, Atlanta Investment Holdings C Limited, had exchanged contracts back in February and Ardonagh voluntarily notified the CMA of the merger.
“We are disappointed with the CMA’s Phase 1 findings,” said Atlanta CEO Ian Donaldson. “Rather than enter into a long, burdensome and expensive Phase 2 enquiry we have decided that an appropriate course of action for Atlanta is to divest Bennetts in order to focus on continuing to provide excellent choice and service to motorcycle riders, and to provide clarity for both Atlanta and Bennetts moving forward.
“We remain committed to delivering great value services to customers and will now concentrate our efforts on organic growth with our Carole Nash and Swinton Bike brands.”
