Australia’s competition regulator will not oppose Viva Energy’s billion dollar takeover of convenience store operator On The Run.
The Australian Competition and Consumer Commission’s (ACCC) essentially approved the $1.15 billion acquisition after Viva committed to a court-enforceable undertaking to divest 25 Coles Express sites in South Australia, where the majority of OTR Group stores are based.
The ACCC had flagged concerns about the expansion of Viva into South Australia for the likely concentration of market power it would hand to the one company.
“Without the divestiture, the proposed acquisition would combine the largest retail fuel network in South Australia with Viva Energy’s retail network, providing Viva Energy with an extended network that is significantly larger than its next largest rival,” ACCC Commissioner Stephen Ridgeway said.
Viva’s buyout of OTR and the groups more than 205 stores will make Viva Australia’s biggest player in the convenience store market.
Viva proposed Chevron as the purchaser of the stores it plans to divest, a move backed by the ACCC.
The consumer watchdog says Viva will pick up 13 sites from Chevron in the exchange, with those stores being located in Queensland, New South Wales and Western Australia.
“The ACCC considers that the undertaking given by Viva Energy will create a viable, effective, standalone, independent and long-term competitor,” Mr Ridgeway said.
