The Australian Competition and Consumer Commission (ACCC) has approved Ampol Ltd.’s acquisition of EG Australia, paving the way for a massive consolidation of the nation’s retail fuel and convenience sector, subject to the sale of dozens of petrol stations.
Under the conditional approval, Ampol must divest 41 retail fuel sites across the country to an ACCC-approved buyer to address local monopoly concerns.
Ampol, which currently operates 576 branded sites and 46 unmanned U-GO stations, initially offered to offload just 19 stations.
However, it increased the remedy to 41 during the watchdog’s strict Phase 2 assessment to avoid a declaration that the deal would substantially lessen competition.
The regulator has approved Dib Group, trading as Metro Petroleum, to purchase all 41 divestment sites. Metro Petroleum currently operates over 300 stations nationwide.
“The ACCC was concerned the acquisition could materially reduce competition and reduce choice for Australian motorists,” ACCC Commissioner Dr Philip Williams said.
“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.”
Williams added that Metro Petroleum’s expansion into these 39 overlapping local markets would create a strong, independent and viable long-term competitor. The ACCC has granted Metro a notification waiver under Australia’s mandatory new merger control regime, which came into effect on January 1, allowing the transfer to proceed without further bureaucratic delays.
EG Australia, which entered the local market in 2019 after buying Woolworths’ fuel assets, operates 512 sites. Because the business already uses Ampol as its exclusive wholesale fuel supplier, the integration is expected to be seamless.
Ampol has elected to settle the entire transaction in cash, utilising its strong recent financial performance to settle the scrip component. The net cash consideration payable to the UK-based EG Group is approximately AU$1.1 billion.
Ampol CEO Matt Halliday welcomed the decision, stating the acquisition aligns with the company’s focus on growing high-quality, predictable retail earnings.
“This transaction is a major step in delivering Ampol’s strategy by strengthening our retail network and enhancing our segmented customer offer.
“EG Australia is a business that we know well, and the acquisition is consistent with our strategy to grow higher quality, more predictable retail fuel and convenience earnings.”
The company expects to capture between AU$65 million and AU$80 million in corporate synergies, and to complete the acquisition of EG Australia on June 30.
