Bundeskartellamt clears merger between Carglass and junited AUTOGLAS

The Bundeskartellamt has cleared the acquisition of the "junited AUTOGLAS" network and three individual garages that offer vehicle glass repair services by Belron GmbH, Cologne, the parent company of Carglass GmbH. The proposed merger affects the business area "repair and replacement of vehicle glass".

With 330 sites and around 350 mobile service units, Carglass is Germany's largest vehicle glass specialist in the market affected by the merger. The target company junited holds the trademark "junited Autoglas", which stands for a Germany-wide network of approx. 230 independent repair garages ("junited partners") offering vehicle glass repair and replacement services.

Andreas Mundt, President of the Bundeskartellamt: "The merger is not expected to significantly impede effective competition in the sector affected. Our investigations have shown no indication of this, either at national level or in the individual regional markets. In spite of Carglass's strong brand image, a large number of vehicle owners still have their glass breakages repaired by the authorised repair garages of their vehicle manufacturer."

The role of vehicle insurers in the glass breakages business was another relevant factor in the decision. The costs of the vast majority of glass breakages are covered by vehicle insurers. As a result the insurance companies can limit the scope of action of the glass repair companies in negotiations on framework contracts.