ACCC taps the brakes as BP-Woolworths petrol station deal hits a bump

JOHN DURIE
November 29, 2017
The Australian
ACCC taps the brakes as BP-Woolworths petrol station deal hits a bump

BP Australia Chairman Andy Holmes at a BP service station in South Melbourne. (David Geraghty/The Australian)

The $1.8 billion BP deal to buy 531 petrol stations from Woolworths has hit a last minute hurdle with the participants seeking a delay in the decision.

This was due tomorrow with the deal expected to be cleared subject to the forced divestments of some stations.

The issue was how many stations and whether this would impact the economics of the deal.

Some competitors suggested as many as 100 stations would need to be divested.

In a statement today the ACCC said: At the request of BP and Woolworths (WOW), the ACCC has delayed its consideration of BP’s proposed acquisition of the Woolworths’ retail service station sites so that the ACCC can consider further information from the parties.”

“The expected new decision date is December 14, 2017,” it added.

“This is a significant decision for the retail petrol market in Australia. The extension to the consideration period will allow the ACCC to consider further information from the parties,” ACCC Chairman Rod Sims said.

“This potential transaction involves complex, extensive data analysis of fuel prices across all fuel sites in Australia over a number of years, and it’s vital we take the time to thoroughly assess its likely impact.