Ampol cleared to acquire EG Australia for $789mn following divestiture deal
The deal combines Ampol's 622-site network with EG Australia's 512 sites.
Australia's competition regulator has approved Ampol's A$1.1 billion ($789mn) acquisition of EG Australia, subject to conditions requiring the fuel retailer to divest 41 sites to an approved buyer.
The Australian Competition and Consumer Commission (ACCC) found that without the conditions, the deal, which combines Ampol's 622-site network with EG Australia's 512 sites, risked substantially lessening competition across 39 local markets where the two operators overlap.
"The ACCC was concerned the acquisition could materially reduce competition and reduce choice for Australian motorists. We are very conscious of community concern about fuel prices and cost of living," said ACCC Commissioner Dr Philip Williams.
Ampol initially proposed divesting 19 sites but raised the offer to 41 during the ACCC's Phase 2 assessment. The regulator has approved Dib Group, trading as Metro Petroleum, as the buyer of those sites, also granting it a notification waiver to allow the transaction to proceed without further delay. Metro Petroleum currently operates more than 300 sites across Australia.
EG Australia entered the Australian market in 2019 when it acquired Woolworths' fuel and convenience network. Under an existing agreement, Ampol has served as EG Australia's exclusive fuel wholesaler, with sites branded under the Ampol name.
