AdBlue Manufacturers and Distributors

On 21 October 2022, Brenntag Australia Pty Ltd (Brenntag) applied to revoke authorisation AA1000598 and substitute authorisation AA1000622. Brenntag applied on behalf of itself, other AdBlue manufacturers listed in the application, and other industry participants (together, the Parties) to share information and collaborate to obtain adequate supply of technical grade urea to ensure sufficient supply of diesel exhaust fluid (DEF) – also known as AdBlue – for Australian consumption, and the prioritised distribution of technical grade urea and DEF should shortages emerge.

Brenntag sought authorisation for the Parties to propose, discuss, enter into or give effect to any contract, arrangement or understanding between them, or engage in any conduct, where the contract, arrangement, understanding or conduct has the purpose of securing adequate supplies of technical grade urea; promoting adequate production of DEF for the Australian market; ensuring security of supply of technical grade urea and DEF for Australian businesses and consumers; or prioritising access to technical grade urea and DEF as necessary, including by:

1. sharing commercially sensitive information (for example, relating to stock levels, supply channels and manufacturing opportunities), but not relating to price
2. facilitating or ensuring the acquisition and/or supply of refined urea or DEF
3. prioritising access to refined urea and DEF according to need (for example, to particular geographical areas or consumers) as directed by the Australian Government
4. collaborating on the production of DEF, and
5. implementing sales limits (to be applied uniformly across all purchasers).

Authorisation was sought for 4 years.

On 24 November 2022, the ACCC granted urgent interim authorisation with conditions so that the Parties can continue to engage in the conduct authorised in AA1000598 while the substantive application for authorisation was being assessed by the ACCC.

On 19 June 2023, Brenntag proposed a number of amendments to its application for authorisation, including narrowing the parties to the authorisation to entities who are currently members of the DEF Supplier Working Group and future members of the DEF Supplier Working Group who notify the ACCC. These amendments are outlined in the Department of Climate Change, Energy, the Environment and Water’s submission of 19 June 2023, available below under ‘Submissions – before draft decision’. The amended application is also available below, under ‘Applications’.

On 11 September 2023, the ACCC issued a draft determination proposing to grant authorisation, with conditions, for a period of 4 years for a narrower set of Authorised Conduct.

On 12 October 2023, the ACCC issued a final determination granting authorisation, with conditions, for a period of 4 years for the narrower set of Authorised Conduct outlined in its draft determination. The conditions specified are slightly different to those imposed in the interim authorisation.

A copy of the ACCC’s final determination decision and the application are available below.