AUSTRALIA | An acquisition proposal for Ampol for EG Australia has been approved by ACCC, subject to conditions.
The ACCC has approved Ampol Retail Holding Pty Ltd’s acquisition of EG Group Australia and EG AsiaPac Holdings, subject to conditions for Ampol to divest 41 retail fuel sites across Australia to an ACCC-approved purchaser.
Ampol and EG Australia are both retail suppliers of fuel, including petrol and diesel, and convenience products in all Australian states and territories. Ampol owns and operates 576 sites under the Ampol brand, and 46 under the U-GO brand. EG Australia owns and operates 512 retail sites.
The ACCC’s review considered whether Ampol’s acquisition of EG Australia would reduce competition in areas where Ampol and EG Australia sites overlap at the local market level. The ACCC also considered competitive effects in the retail supply of fuel across broader metropolitan markets.
“Without the conditions, the ACCC considered the acquisition could have the effect of substantially lessening competition in the retail supply of petrol or diesel in 39 local markets, where 41 EG Australia sites overlap with Ampol sites,” ACCC Commissioner Dr Philip Williams said.
“The ACCC was concerned the acquisition could materially reduce competition and reduce choice for Australian motorists. We are very conscious of community concern about fuel prices and cost of living, and we are continuing to closely monitor and report on the fuel industry.”
Ampol initially offered to divest 19 sites across Australia, but increased it to 41 sites during the ACCC’s Phase 2 assessment.
The ACCC has approved Dib Group (Metro Petroleum) as the purchaser of the divestiture sites and has separately granted it a notification waiver for its acquisition of the sites. Metro Petroleum and its related entities own and operate over 300 sites across Australia.
“We believe Metro Petroleum’s acquisition of the divested sites would result in the creation, or expansion, of a strong, independent and viable long-term competitor in the 39 local markets,” Dr Williams said.
The ACCC granting Metro Petroleum a notification waiver enables the divestiture to be implemented without further approvals or delay.
“Our ability to expedite Metro Petroleum’s waiver application was facilitated by our in-depth investigation of the Ampol acquisition, which demonstrates how the remedy and notification processes can be managed efficiently in the new merger regime.”
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