Ritchie Bros. Discontinues Euro Auctions Acquisition
MAY 2, 2022 - 7:17 am
Ritchie Bros. Auctioneers’ wholly-owned, indirect subsidiary, Ritchie Bros. UK Holdings, is discontinuing is discontinuing the Phase 2 review by the UK Competition and Markets Authority (CMA) in relation to the sale and purchase agreement dated Aug. 9, 2021, pursuant to which it had agreed to purchase Euro Auctions, William Keys & Sons Holdings, Equipment & Plant Services and Equipment Sales. The agreement will automatically terminate on June 28, 2022. The decision follows the referral of the proposed acquisition to a Phase 2 review by the CMA.
Completion of the agreement was conditional on receipt of clearance from the CMA on terms satisfactory to the Ritchie Bros. UK Holdings, but after consideration, the company said it does not believe there is any realistic prospect for approval by the CMA on such terms given the significant concerns raised by the CMA to date.
Ritchie Bros. intends to issue redemption notices with respect to the $600 million aggregate principal amount of 4.75% senior notes due 2031 and the C$425 million ($330.29 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.
“We 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,” Ann Fandozzi, CEO of Ritchie Bros., said. “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.”
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