UK Puts Brakes On $50M Zipcar, Streetcar Merger

Law360, New York (August 10, 2010, 6:24 PM EDT) -- U.K. competition officials on Tuesday referred Zipcar Inc.'s acquisition of British car-sharing service Streetcar Ltd. for further review, saying the $50 million deal could potentially lead to higher prices and reduced services for consumers.

The U.K. Office of Fair Trading asked the Competition Commission to conduct an investigation into the tie-up of the largest car-sharing company in the U.S. with the largest in Britain.

Zipcar entered the London market in 2007, with Streetcar as its largest rival.

The OFT said the combination would increase the number...
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