On 13 October 2008 Caltex acquired a Mobil fuel reselling business operated by Cocks Petroleum Pty Ltd and South Coast Retail Pty Ltd. The assets of the Cocks Petroleum/South Coast Retail business comprised of four service stations and three bulk fuel depots located in the south east region of NSW.
On 15 December 2008 Caltex acquired the Caltex-branded fuel reselling business operated by Malcolm Slater Pty Ltd and Wonfair Pty Ltd. The assets of the Slater/Wonfair business comprised of four service stations and two bulk fuel depots located in the south east region of NSW.
Outcome of assessment
Not opposed
Total review days *
82
Commenced public review
6th February 2009
Date completed
4th August 2009
Market definition
The ACCC considered the competitive effects of the completed acquisitions in the context of:
- local retail markets for the supply of petrol and diesel; and
- regional wholesale/retail markets for the bulk supply of petrol and diesel to 'small drop' customers (comprising commercial end users and retail service stations).
For the purposes of the competition analysis, the ACCC did not consider it necessary to form a definitive view regarding market definition.
Competition analysis
The ACCC formed the view that the completed acquisitions were unlikely to substantially lessen competition in the relevant markets. In reaching its conclusion, the ACCC had regard to the following key factors:
- in the local retail markets in which Caltex has acquired a retail service station, there were either competitive constraints offered by other competing retail sites, or otherwise the completed acquisitions did not result in horizontal aggregation in retail sites controlled by Caltex; and
- in regional wholesale/retail markets in which Caltex has acquired bulk fuel depots:
(i) in areas surrounding Cooma and Bombala, a competitive constraint is offered by a competing bulk fuel depot;
(ii) in areas surrounding Moruya and Bega, there is only a minimal overlap in distribution areas supplied by the acquired bulk fuel depots; and
(iii) in areas surrounding Bega and Eden, notwithstanding the similar distribution areas serviced by the acquired bulk fuel depots in these locations, based on information received specific to the Bega bulk fuel depot and its circumstances, the ACCC concluded that it was unlikely that this depot would continue as a viable business offering effective competition in the counterfactual.
Review timeline
Date
Event
13th October 2008
Caltex acquired Cocks Petroleum Pty Ltd and South Coast Retail Pty Ltd .
15th December 2008
Caltex acquired Malcolm Slater Pty Ltd and Wonfair Pty Ltd.
23rd January 2009
Caltex notified the ACCC of the completed acquisitions.
6th February 2009
ACCC commenced review under the Merger Review Process Guidelines.
6th March 2009
Closing date for submissions from interested parties.
4th August 2009
ACCC announced it would not oppose the completed acquisitions.
The ACCC requested further information from Caltex on 3 occasions during this review, resulting in the timeline being suspended for 40 business days.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
