Ritchie Bros, a heavy equipment auction expert dealing in purchase and sale of trucks and other assets, has announced that its auctioneering unit has called off the £775 million ($817.4 million) purchase bid for rival Euro Auctions after the UK market regulator referred the deal for an in-depth Phase 2 investigation.

 

The planned purchase of Dromore plant and machinery auction house Euro Auctions for £775 million has been abandoned by global asset management, disposition, and services company, Ritchie Bros. Auctioneers.

 

The decision by Canada-based Ritchie Bros. to call off the purchase follows after the UK Competition and Markets Authority (CMA) referred the deal for an in-depth Phase 2 investigation.

 

Ritchie Bros. Auctioneers, a leading global asset management, disposition, and services company, has announced that its wholly-owned indirect subsidiary, Ritchie Bros UK Holdings has abandoned the £775 million ($817.4 million) purchase bid for rival Euro Auctions after the UK market regulator referred the deal for an in-depth Phase 2 investigation.

 

Following the CMA move, Ritchie Bros said the sale and purchase agreement dated August 9, 2021 - pursuant to which it had agreed to purchase Euro Auctions, William Keys & Sons Holdings, Equipment & Plant Services and Equipment Sales - will automatically terminate on June 28.

 

The company said it intends to issue redemption notices with respect to the $600 million aggregate principal amount of 4.75% senior notes due on 2031 and the C$425 million aggregate principal amount of 4.95% senior notes due 2029 previously issued to finance a portion of the cash consideration for the proposed acquisition and expects to complete the redemptions within 10 business days.

 

On the new development, CEO Ann Fandozzi said: "We at Ritchie Bros are disappointed by the decision taken by the CMA to refer the proposed acquisition to a Phase 2 review and respectfully disagree with their views. While we believe the proposed acquisition would have accelerated our strategy, we remain committed to forging ahead in our transformational journey to become the trusted global marketplace for insights, services and transaction solutions."

 

"We will continue to seek out and execute on organic investments and key acquisitions to accelerate our pace in achieving our ultimate vision, she added.-TradeArabia News Service