CMS acts for Cox Automotive on “Dealer Auction” joint venture with Auto Trader Group

International law firm CMS has advised Cox Automotive on a joint venture with Auto Trader Group to create “Dealer Auction” – an online auction service for wholesale vehicles in the UK. The co-owned business will provide fleet companies, manufacturers and retailers with a more efficient and convenient way to dispose of their stock of vehicles.

The joint venture agreement is conditional upon clearance from the UK’s Competition and Markets Authority. If approved, the new business will combine three businesses onto one platform. Cox Automotive will transfer “Dealer-Auction.com” (its online auction of trade-in vehicles from UK franchise dealers) and Manheim Online (its online remarketing services division) to the joint venture and Auto Trader will transfer Smart Buying (its retailer-to-retailer platform).

Outside the joint venture, the wider Cox Automotive and Auto Trader businesses will remain distinct and continue to operate as normal and in competition with each other.

Client relationship partner Simon Morgan led a multi disciplinary team including Corporate Transaction team associates Maximilian Weaver, Richard Moir and Nikki Kalamis and members of the firm’s TMC and IP teams including Dominic Dryden, Emma Burnett, Laura Lucy, Matt Martino and Yvonne Onomor. Tax advice was provided by Mark Joscelyne, Alexandra Tuck, Robert Sartor and Dave Johns and anti-trust advice was provided by Brian Sher, Kabir Garyali and Jacqueline Vallat.

Martin Forbes, Chief Executive Officer at Cox Automotive UK, said: " Simon and the CMS team have worked with Cox Automotive for over 20 years. They truly understand our business and our market and the team demonstrated enormous commitment in getting this transaction completed”.

Simon Morgan said: "This deal shows how two companies are responding to the ever-increasing influence of digital. We were glad to support Martin, and the Cox Automotive team more broadly, as they take their business forward”.

Travers Smith LLP acted for Auto Trader Group.