The Australian Competition and Consumer Commission will not oppose the proposed acquisition of Woodside Petroleum Limited by Shell Australia Investments Limited, ACCC Chairman, Professor Allan Fels, said today.
The ACCC conducted extensive market inquiries regarding the proposed takeover seeking comments from competitors, customers, industry associations and governments.
The main area of competitive overlap between the parties is in the gas exploration and production markets in Western Australia.
Shell and Woodside are joint venture partners in the predominant Western Australian gas production project, the North West Shelf. The merged entity would still be required to act in accordance with joint venture arrangements, including in relation to production decisions.
Buyers of domestic gas in Western Australia hold long term contracts that minimise the risk of coordinated conduct or cost increases.
The ACCC has concluded that the acquisition of Woodside Petroleum by Shell is unlikely to result in a substantial lessening of competition in any Australian market and therefore does not intend to intervene in the acquisition.