New ACCC powers will be put to the test for the first time, as the watchdog defers Ampol's acquisition of EG Australia and its over 500 fuel sites to a phase two merger review.
New ACCC powers will be put to the test for the first time, as the watchdog defers Ampol's acquisition of EG Australia and its over 500 fuel sites to a phase two merger review.
The Australian Competition and Consumer Commission said in a statement Ampol's $1.1 billion acquisition required further in-depth assessment, pushing it to a phase two review.
It's the first merger to be subject to a phase two review, after new laws came into effect on January 1.
Under the new rules, it's mandatory for businesses to notify the ACCC of any acquisition which meets the notification threshold set by the minister—being a merger of parties with combined revenue exceeding $200 million or transaction value exceeding $250 million.
In the statement the ACCC said it was satisfied the acquisition could substantially lessen competition in the retail fuel petrol and diesel markets of several states.
"The acquisition would combine two major fuel retailers in Australia," ACCC commissioner Philip Williams said.
"We have identified 115 EG sites where the acquisition could substantially lessen competition in the relevant local market, and also consider the acquisition could substantially lessen competition in the metropolitan areas of Brisbane, Canberra, Melbourne and Sydney."
Under the current acquisition plan, Ampol had offered to divest 19 fuel stations; a move the ACCC labelled inadequate.
The ACCC's decision comes despite the pair being in a supply partnership for the better half of a decade; with Ampol being the exclusive supplier to EG Australia's 500 sites, which are branded as 'EG Ampol'.
The $1.1b acquisition comes as EG Group looks to exit the Australian market, using the funds to decrease global debt according to Gilbert and Tobin's Peter Cook, who advised EG Group on the deal.
The funding structure comprises approximately $800 million in cash and $250 million in Ampol shares issued to EG Group.
In a statement following the ACCC's move, Ampol stressed the phase two review was now part of the process.
"Ampol remains confident in its position and will continue to work constructively with the ACCC during this phase," the statement said.
"The transaction remains on track for anticipated completion in mid-2026."
Submissions on the deal are now open until February 4, with a phase two assessment taking up to 90 business days, unless extended under specific circumstances.
