Apollo can buy Z if it sells Gull

The Commerce Commission has granted clearance for Ampol Ltd to acquire 100 per cent of Z Energy’s shares subject to an undertaking from Ampol to sell Gull.

“The commission is satisfied that, if Ampol sells Gull, the acquisition will not have or be likely to have the effect of substantially lessening competition in any relevant market in New Zealand,” says chair Anna Rawlings. “We test this by comparing the likely state of competition if the merger proceeds with the likely state if it does not.”

Under the terms of the divestment undertaking, Ampol is required to sell Gull as a going concern within a specified timeframe and to a purchaser approved by the regulator.

Rawlings, pictured, adds: “We are aware Ampol has entered into an agreement to sell Gull to Allegro Funds. In granting clearance, the commission is not approving Allegro as the purchaser of Gull.

“Under the terms of the divestment undertaking, Ampol is required to obtain separate, formal approval for Allegro to acquire Gull. We will consider such a request once it is received.”

The commission will approve a buyer if it’s satisfied that, among other things, it has the financial resources, business expertise and incentive to viably operate and develop Gull in competition with Z Energy and the proposed purchaser’s acquisition of Gull is not likely to create competition concerns that would result in a contravention of section 47(1) of the Commerce Act 1986.

If the regulator doesn’t approve Allegro, the terms of the divestment undertaking provide a process for Gull’s sale to an alternative purchaser approved by the commission.