Ampol’s proposed acquisition of EG Australia has been cleared by the Australian Competition and Consumer Commission (ACCC) after securing a commitment from the fuel retailer to divest 41 service stations across five states.
The regulator said the divestments would address competition concerns in local fuel markets where the combined business could otherwise reduce consumer choice and weaken price competition.
To secure approval, Ampol committed to selling 41 sites across Queensland, NSW, Victoria, SA and WA.
“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,” said ACCC commissioner Philip Williams.
The acquisition, first announced in August, will significantly expand Ampol’s retail footprint, adding hundreds of fuel and convenience stores to its network.
Following the ACCC’s decision, Ampol MD and CEO Matt Halliday said the deal would enable the company to expand its low-cost U-Go fuel offer on a much larger scale.
According to the Australian Financial Review, Halliday said Ampol would use the EG Australia network to accelerate the rollout of the discount fuel brand. Around 125 EG sites are expected to be converted to the U-Go format, increasing the network from 46 locations to about 170 nationwide.
The ACCC has approved Dib Group (Metro Petroleum) as the buyer of the divestment sites and granted a notification waiver for the acquisition, saying the deal would create or strengthen a viable long-term competitor in the 39 affected local markets. Metro Petroleum and its related entities currently own and operate more than 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,” Williams said.
The transaction is expected to be completed by the end of this month.
Source: https://insideretail.com.au/sectors/accc-clears-ampols-eg-australia-takeover-subject-to-divestments-202606