Ampol has revised its offer for EG Australia, doubling the number of petrol stations it is prepared to sell off to address concerns from the competition watchdog.
In a revised remedy proposal lodged with the Australian Competition & Consumer Commission (ACCC), Ampol offered to divest 37 sites across the country.
This is nearly double from the 19 sites initially proposed, as the gas retailer moves to neutralise preliminary concerns that the takeover could lead to higher prices for Australian motorists.
The AU$1.1 billion deal would see Ampol acquire EG Australia’s nationwide network of approximately 500 sites. While the acquisition would strengthen Ampol’s position as one of Australia’s leading transport energy providers, the deal has faced intense scrutiny over market competition.
The ACCC in January decided that the acquisition required further in-depth assessment, stating that Ampol’s initial offer to divest 19 retail fuel sites does not address the regulator’s concerns.
“The acquisition would combine two major fuel retailers in Australia,” ACCC Commissioner Dr Philip Williams said.
“We have identified 115 EG sites where the acquisition could substantially lessen competition in the relevant local market, and also consider that the acquisition could substantially lessen competition in the metropolitan areas of Brisbane, Canberra, Melbourne and Sydney.”
Ampol’s decision to throw another 18 sites in its offer follows weeks of extensive engagement with the regulator. The company stated it believes the expanded package fully addresses any remaining hurdles, clearing the path for the merger.
Ampol confirmed it has already materially progressed discussions with potential buyers for the 37 sites. However, any purchaser must still pass the ACCC’s fit and proper test to ensure they can operate as viable, independent competitors to the Ampol-EG behemoth.
The ACCC will now begin a public consultation process on the revised package, seeking feedback from industry players and consumer groups.
The watchdog is expected to hand down its final Phase 2 determination on June 5. If cleared, Ampol expects to wrap up the transaction by mid-year, solidifying its position as the nation’s leading fuel retailer.
