Ōtautahi – The Commerce Commission has granted clearance for Ampol to acquire 100 percent of the shares in Z Energy.
The clearance is subject to an undertaking from Ampol to sell Gull. The change in petrol station owners is significant as record high fuel prices are impacting most New Zealanders.
Fuel prices have dropped after the government removed 25 cents in petrol tax but experts say the price could rise again as oil prices remained volatile while the Ukraine and Russia conflict continues.
In 2010 the branding remained as Shell whereas the holding company was renamed from Shell NZ to Greenstone Energy. After surveying 17,000 customers the following year, the company changed its names to Z Energy and branded the service stations as Z.
The commission says it 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.
They tested the market by comparing the likely state of competition if the merger proceeded with the likely state of competition if the merger does not proceed.
Under the terms of the divestment undertaking, Ampol is required to sell Gull as a going concern within a specified timeframe, and to a purchaser approved by the commission.
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.
But Ampol is required to obtain separate, formal approval from the commission for Allegro to acquire Gull. It will consider such a request once it is received.
The commission says it will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Under the terms of the divestment undertaking, Ampol is required to apply to the commission for approval of the purchaser of Gull.
If the commission does not approve Allegro as the purchaser of Gull, the terms of the divestment undertaking provide a process for the sale of Gull to an alternative purchaser approved by the Commission.
