Regulator publishes takeover issues
The Commerce Commission has published a statement of issues relating to Ampol Ltd’s application seeking clearance to acquire 100 per cent of shares in Z Energy.
The takeover is subject to an undertaking from Ampol to sell its Gull business either by a trade sale or an initial public offering.
Potential competition issues with the acquisition following the regulator’s initial investigation, including in relation to the proposed divestment undertaking, are outlined in the statement of issues.
The statement is not a final decision and doesn’t mean the commission intends to decline or clear the acquisition.
It is now seeking submissions from Ampol, Z Energy and other interested parties on issues raised. They should be emailed to registrar@comcom.govt.nz with the reference “Ampol/Z” by close of business on February 1, with cross-submissions due by February 11.
The commission is currently scheduled to make a decision on the application by March 16. However, this date may be extended. The statement of issues and a public version of the application can be found on the regulator’s case register.
Background
Z Energy is a New Zealand-based fuel company. It has operations across the fuel supply chain in this country including refining, importing, storage, distribution, wholesale supply and retail supply to commercial and retail customers. At the retail level, it supplies fuel through Z and Caltex-branded service stations.
Ampol is an Australian-based fuel company. In New Zealand, it operates through its subsidiaries Gull NZ, Terminals NZ and ALD Group Holdings – together known as Gull.
Gull sources most of its refined fuel requirements from Ampol in Australia and imports it into New Zealand via its storage facility at Mount Maunganui. It supplies commercial and retail customers primarily through its Gull-branded service stations.
The commission will give clearance to a proposed merger if satisfied it is unlikely to have the effect of substantially lessening competition in a market.
In giving clearance, the regulator may accept an undertaking from the applicant to dispose of assets or shares.
