ACCC CLEARS VIVA ENERGY’S ACQUISITION OF LOC GLOBAL

The ACCC has given the green light for Viva Energy’s acquisition of the remaining 50 per cent stake in LOC Global from New World Corporation (NWC), after the fuel giant agreed to divest 14 retail fuel and convenience sites.

The court-enforceable undertaking addresses competition concerns related to the overlap between Viva Energy and LOC, which operates over 100 Liberty-branded retail sites across mainland Australia.

“Without the divestiture, the ACCC was concerned the proposed acquisition could increase prices and reduce service offerings, particularly in Adelaide and in certain local areas in Darwin, regional Queensland, and regional Victoria,” said ACCC Commissioner Dr Philip Williams.

The 14 sites, located in South Australia, Victoria, Northern Territory, and Queensland, will be transferred to Solo Oil Corporation, a wholly owned subsidiary of NWC.

The divestments must occur on or before the finalisation of Viva Energy’s acquisition of LOC.

“We consider with the divestments, Solo will become a viable, effective, and long-term standalone competitor to Viva.”

As part of the proposed acquisition, Viva Energy will acquire 88 active LOC retail fuel sites and 10 planned sites across South Australia, Victoria, Western Australia, New South Wales, Queensland, and Northern Territory.

Viva Energy operates a nationwide fuel supply chain, including retail brands like Coles Express, Reddy Express, and OTR sites.

Its acquisition of LOC initially raised concerns about competition in the retail fuel sector across metropolitan and regional areas in South Australia, Victoria, Western Australia, New South Wales, Queensland, and the Northern Territory.

The ACCC also assessed competition in Adelaide’s wholesale petrol market but concluded the acquisition would not substantially lessen competition in that segment.

Viva Energy initially proposed to divest 12 sites but increased the number to 14 in response to ACCC feedback. Additionally, 13 LOC sites excluded from the deal will continue to be operated by Solo.

With the divestment plan in place, the ACCC believes the acquisition will not harm competition in any market, paving the way for the transaction to proceed.

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