THE purchase of Britain's Automobile Association (AA) by two financial groups has been cleared by the European Commission, despite competition concerns regarding Kwik-Fit and Halfords.

New AA co-owner CVC Capital Partners, of Luxembourg, owns Kwik-Fit and Brussels is concerned it - like the AA - provides breakdown services. But, following an inquiry, the commission concluded Kwik-Fit's market share was too small for the deal to damage consumer choice.

It had similar concerns about CVC part- owned Halfords. It and the AA provide vehicle data check services in Britain, but again Brussels concluded combined market shares were small. The other new AA co-owner is UK equity fund Permira Europe III.