(Montreal) The British competition authority has raised some concerns about the agreement which would see LKQ acquire the Quebec company Uni-Select and is examining a plan put forward by the two companies to allay its fears.

The Competition and Markets Authority said its investigation found the consolidation could reduce competition in the supply of auto parts and equipment to independent garages and workshops in 145 local areas, and in the supply of auto parts to national and multi-regional customers.

She said she would now consider a proposal submitted by LKQ and Uni-Select, which the companies said could address the regulator’s concerns, before deciding on the next step.

The American company LKQ announced in February an agreement of approximately 2.8 billion to acquire Uni-Select, of Boucherville.

As part of the acquisition, LKQ said at the time that it would undertake a process to sell GSF Car Parts U.K., a mechanical parts distribution business of Uni-Select in the UK.

LKQ, through Euro Car Parts, operates 248 stores and two distribution sites in the UK, while Uni-Select, through GSF Car Parts, operates 179 stores and two distribution sites in the country.