The ACCC has issues with the impact on new car retailing in the Newcastle and Hunter Valley region of NSW.
It says a combined AP Eagers and AHG would run 54 per cent of the dealership sites selling the 10 most popular brands, in that region.
Hyundai warned against the merger in an original submission, which prompted a meeting between the AP eagers boss and the Hyundai Australia CEO.
The competition regulator says it has ''preliminary concerns'' about AP Eagers' proposed $2.3 billion buyout of rival car dealer Automotive Holdings Group because of the impact on car retailing in the Newcastle and Hunter Valley region.
The Australian Competition and Consumer Commission said on Monday that it was now seeking more feedback from market players, with a specific focus on the NSW region, and wanted to know if forced asset sales might fix the problem.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
