22 December 2010
UK Competition Commission clears Zipcar/Streetcar merger without conditions
On 22 December 2010 the UK Competition Commission (CC) confirmed its earlier provisional decision to clear Zipcar’s acquisition of Streetcar without conditions. The merger brings together the two leading UK car club operators, accounting for some 80% of UK car club vehicles. The CC’s investigation explored a number of competition concerns with the merger, principally associated with unilateral effects. On the basis of its assessment of diversion ratios and other evidence, the CC found that the merger would result in some upward pressure on prices, but concluded that the likelihood of entry and expansion by rival car club operators would negate any such effects and protect consumers. The CC’s conclusions can be found here RBB advised the parties on this transaction, working with a team from the London office of Freshfields throughout the CC investigation.