Viva Energy Australia’s bid to buy out the remaining half of Liberty Oil Holdings’ wholesale business will be unopposed.
The Australian Competition and Consumer Commission says it will not block the wholesale deal, which will also mean Liberty’s retail fuel stations will remain under 50% ownership by Viva Energy.
One of the ACCC’s primary concern was how wholesale supply of fuel to independent service stations, distributors and commercial and rural buyers might be skewed unfavourably.
The regulator was also wary of whether, post-acquisition, Viva would encourage or force Liberty-branded retailers Melbourne and Adelaide to price less aggressively, cornering consumers and lessening competition.
ACCC commissioner Stephen Ridgeway says competition would not be stifled in Victorian or South Australian capitals.
“In metropolitan Adelaide, most Liberty branded sites are dealer sites, where Liberty does not set the price,” he says.
“In metropolitan Melbourne, another city where Liberty branded sites operate, Liberty has a very small share of retail sites. The proposed acquisition is therefore unlikely to have a significant impact,” Ridgeway adds.
“Retailers told us that there are alternative wholesale suppliers and alternative brands they could switch to,” he points out.
“We consider that, post-acquisition, the threat of fuel retailers switching to an alternative supplier is likely to constrain Viva’s wholesale prices and supply terms,” Ridgeway concludes.
