(Updates to add stock movement in the headline and last paragraph)
Peter Warren Automotive Holdings' (ASX:PWR) planned purchase of 30 new car dealership sites from Wakeling Automotive Group will undergo a detailed phase two Australian Competition and Consumer Commission (ACCC) review after the competition regulator raised concerns about the deal's potential impact on market competition, according to an Australian bourse filing on Tuesday after market hours.
The regulator did not approve the acquisition during its phase one assessment, saying that the merged company would own 25 of the region's 33 new car dealerships, per the filing. It is assessing how the deal could affect competition in new vehicle sales, as well as servicing and repair services.
The ACCC has yet to make a final decision and is inviting public submissions until June 16, the filing added. The phase two review could take up to 90 business days.
In a separate filing, Peter Warren Automotive said the companies will continue to work with the ACCC to address any concerns arising during the phase two review.
The company's shares fell around 3% in recent Wednesday trade.