Competition Commission (National): CC clears Zipcar/Streetcar merger

The Competition Commission (CC) has formally cleared Zipcar Inc’s completed acquisition of rival car club Streetcar Limited.

The CC has concluded that other companies are likely to enter and expand into this rapidly growing market, and that such competition will counter the danger of the merged company being able to raise prices or worsen its services to customers. The final report is available atwww.competition-commission.org.uk.

The acquisition, which was completed in April 2010, brings together Streetcar, the largest car club in London, and Zipcar, the second largest. Car club members pay an annual membership fee and are able to hire cars by the hour picking up the vehicle from convenient nearby locations, using the flexibility offered by smart card technology and online and mobile booking tools.

The Office of Fair Trading (OFT) referred the case to the CC in August for the CC to decide whether the acquisition may be expected to result in a substantial lessening of competition within any market or markets in the UK, including the supply of car club services in London.

Notes to editors

1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.

2. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

3. The members of the Inquiry Group are: Dr Peter Davis (Group Chairman), Roger Finbow, John Longworth and Anthony Stern.

4. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

5. Further information on this inquiry, including the terms of reference and other key docu­ments, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at:www.competition-commission.org.uk.

6. Enquiries should be directed to Rory Taylor or Siobhan Allen or by telephoning 020 7271 0242.