AUS | The Australian Competition and Consumer Commission (ACCC) will not oppose Viva Energy's proposed acquisition of OTR Group, provided Viva Energy divests 25 Coles Express sites in South Australia. Viva Energy operates a nationwide fuel supply chain with retail sites across Australia, including Coles Express convenience sites.
The proposed acquisition would see Viva Energy expand the OTR brand to Coles Express sites in other states. OTR Group is a fuel and convenience retailer primarily operating in South Australia, with the largest retail fuel network in the state and some locations in other states and territories.
The ACCC's review focused on areas where OTR Group and Viva Energy's operations overlap, primarily in South Australia and the Northern Territory. Concerns about the impact on competition and consumer choice in Adelaide and Ceduna were raised.
Viva Energy initially offered to divest 23 of its 32 retail sites in Adelaide, but the number increased to 25 (24 in Adelaide and one in Ceduna) in response to ACCC concerns. Chevron has been proposed as the upfront purchaser of the divestiture sites, and the ACCC has approved Chevron as the buyer. In exchange for the 25 divestiture sites, Viva Energy will receive 13 Chevron sites in Queensland, New South Wales, and Western Australia. The ACCC believes this undertaking creates a viable, effective, standalone, independent, and long-term competitor, avoiding substantially lessening competition.
The ACCC also considered potential effects on wholesale fuel supply, given Viva Energy's supply to the OTR Group network in South Australia.
