Ampol has offered to sell almost double the number of petrol stations it had originally proposed to overcome the competition regulator’s concerns that it would be too dominant if it acquired rival EG Australia for $1.1 billion.
But the offer was well short of the 54 petrol stations under the EG banner that the Australian Competition and Consumer Commission said last month it was concerned about. Those sites overlap with Ampol stations and could “substantially lessen” competition, the regulator said last month.
In a statement, Ampol said it would sell 37 stations, and believed “divesting these sites will fully address any remaining competition concerns”.
“Additionally, Ampol has identified and materially progressed discussions with buyers for the sites proposed for divestment. Any buyer of divested sites will require ACCC approval, and the ACCC’s consultation process will include consideration of potential buyers,” the company said.
The ACCC decided Ampol’s acquisition of EG Australia, agreed last August, warranted a more in-depth investigation because it risked reducing competition in the retail supply of petrol and diesel in several areas.
In January, the ACCC identified 115 sites where the acquisition could threaten competition and rejected Ampol’s initial offer to sell just 19, saying it did “not adequately address these local or metropolitan-wide issues”.
The regulator said Ampol and EG had a combined market share of up to 75 per cent in some of the 51 areas – primarily in Brisbane, Melbourne, Sydney and Canberra – where it had the greatest concerns. It argued that the deal could lead to higher diesel and petrol prices for consumers because the company would implement its own pricing strategies across the EG network and remove a competitor that, on average, priced lower than Ampol.
The regulator is expected to decide on whether to allow the transaction by June 5. It has the power to block the takeover entirely.
The ACCC’s assessment of Ampol’s acquisition coincides with its investigations into allegations of price gouging at some regional service stations amid the oil shock caused by the conflict in the Middle East.
The deal to acquire EG’s Australian portfolio – the company is one of Britain’s largest convenience store operators – originally included 500 service stations. Ampol intended to convert 125 EG sites to its low-cost U-GO model – a pre-paid, self-service alternative to the traditional service stations – over two years after finding success in the low-cost offering.
Shares in Sydney-based Ampol, the former Caltex Australia, were up 1.3 per cent at $32.55 on Thursday morning.
Extracted in full from: https://www.afr.com/companies/energy/ampol-plans-to-sell-more-servos-to-ease-regulator-concerns-on-eg-deal-20260409-p5zmfe
