The Commerce Commission has given Australian fuel retailer Ampol the green light to acquire 100% of the shares in Z Energy Limited.
It follows news earlier this week that Ampol had sold Gull Petroleum to Australian investment firm Allegro Funds for $572 million, on the opening condition of approval by the Commerce Commission that Ampol could then pursue the purchase of Z Energy.
In a statement, the ComCom says it believes the move won’t have an adverse impact on the level of competition in the fuel industry.
“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,” ComCom chair Anna Rawlings says.
“We test this by comparing the likely state of competition if the merger proceeds with the likely state of competition if the merger does not proceed.”
However, it’s not quite the last piece in the puzzle for Ampol.
Z Energy shareholders will vote on the decision on March 25. The ComCom must also approve the sale of Gull to Allegro. It’s expected that Gull’s sale will get approval from the Commission.
“We are aware that 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,” says Rawlings.
“Under the terms of the Divestment Undertaking, Ampol is required to obtain separate, formal approval from the Commission for Allegro to acquire Gull. We will consider such a request once it is received.”
The Commission notes that in order to approve the sale of Gull to Allergo, it will have to be satisfied that the new owner “has the financial resources, business expertise and incentive” to “viably operate and develop Gull in competition with Z Energy”.
Ampol has owned Gull Petroleum since 2017. Known at the time as Caltex Australia the firm was renamed in 2020 following the end of its trademark licensing agreement.
