Zipcar's buyout of UK's Streetcar stalled (Boston)

Zipcar Inc.’s acquisition of a U.K.-based car sharing company has hit a roadblock with British regulators, who plan to investigate whether the merger would harm competition in the country.

Zipcar, a fast-growing car-sharing company based in Cambridge, expanded its European presence by acquiring a competitor in the U.K., Streetcar Ltd., in April.

But on Tuesday, the U.K. Office of Fair Trading said it was concerned that the merged company wouldn’t face enough competition from other forms of transportation, such as private cars and public transportation. The agency said it is “not confident that these alternatives would prevent a combined Zipcar and Streetcar raising prices or reducing services in the future.”

The agency referred the merger to the Competition Commission, which is expected to complete its review by late January.

The commission says on its website that a “wide range of remedies” are available if a merger is found to significantly damage or restrict competition. “For example, in a merger investigation, the (commission) can stop a merger from going ahead, require a firm to sell off part of its business, or require them to behave in a way that safeguards competition,” the website states.

In a prepared statement, Zipcar CEO Scott Griffith said the company is disappointed by the decision, which he said “imposes a delay on a transaction from which consumers and the environment stand to benefit enormously.”

Griffith said the company would cooperate with the commission and is confident that the merger won’t be impacted.

Zipcar filed intentions in June to hold an initial public offering, valued at up to $75 million. The company opened a Portland office last month.