TradeMe takeover vetoed

The Commerce Commission has refused another company takeover deal, this time with TradeMe.

The monopoly watchdog has knocked back online advertiser and auction company TradeMe’s application to take over Motorcentral, a company which produces software used by independent second hand car dealers. TradeMe has a similar sort of business.

The Commission said it declined the takeover because it might have substantially lessened competition in the supply of management systems and online classified advertising to motor vehicle dealers.

Commission Chairman Mark Berry said the deal could have reduced the ability of car dealers to list on rival advertising websites, and also strengthened TradeMe’s already powerful position.

“We could not exclude the real chance that this could result in a substantial lessening of competition in these markets.”

Motor vehicle advertising is one of the strongest growing and most profitable parts of TradeMe.

The company said it was disappointed by the refusal and would wait to see the full decision before deciding its next step.