Regulator to consider fuel merger

The Commerce Commission has received a clearance application from Astra Energy Group Limited to acquire all of the shares in the parent companies of Gull and NPD.

Plans to merge the two brands and create the largest, majority Kiwi-owned fuel company were announced in December.

Astra Energy is seeking to buy all the shares in GNZ Holdco Limited and NPD Group Investments Limited, whose subsidiaries include Gull and NPD respectively.

The brands are both independent low-cost operators supplying fuel in New Zealand predominantly through unstaffed sites.

NPD is a retail-only operator supplying fuel from sites predominantly in the South Island, with a smaller number of sites in the North Island. 

While Gull is an importer and retailer supplying fuel from sites predominantly in the North Island. It also owns and operates a bulk import and storage terminal at Mount Maunganui.

The commission has published a statement of preliminary issues in relation to the application, which outlines the key competition issues the regulator considers important in deciding whether to grant clearance to the proposed deal.

Interested parties are invited to provide comments to the commission on the likely competitive effects of the proposed acquisition by close of business on February 3.

It is due to make a decision on the application by March 16, but this may be extended with the agreement of the applicants if the material before the commission at that time does not allow it to be satisfied the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in a market in New Zealand.

The statement of preliminary issues and a public version of the application can be found on the case register on the commission’s website.