Viva Energy Group Ltd

On 14 December 2023, the ACCC announced it had accepted a court-enforceable undertaking given by Viva Energy Group Ltd (Viva Energy) pursuant to s87B of the Competition and Consumer Act 2010 (Cth) (the Undertaking) in connection with the proposed acquisition by Viva Energy Retail Pty Ltd of the entities which constitute the On the Run business (the Proposed Acquisition). In accordance with the Undertaking, Viva Energy proposes to divest 25 retail fuel and convenience sites in South Australia (24 in Adelaide and one in Ceduna) (the Divestiture Business).

The ACCC was concerned that in the absence of the Undertaking, the Proposed Acquisition would have the effect, or would be likely to have the effect, of substantially lessening competition in the supply of retail fuel in South Australia and in a number of local areas in South Australia.

The Undertaking identifies Chevron Australia Downstream Fuels Pty Limited and Chevron Australia Downstream Stores Pty Ltd as the Approved Purchaser of the Divestiture Business.

Objective of the Undertaking

The objective of the Undertaking is to address the ACCC’s competition concerns, as set out above, that would otherwise arise because of the Proposed Acquisition.

The Undertaking aims to achieve this objective by placing obligations on Viva Energy to:

• ensure that the Divestiture Business is sold to an Approved Purchaser that will result in the creation or strengthening of a viable, effective, stand-alone, independent and long-term competitor for the supply of retail fuel in South Australia and in a number of local areas in South Australia;
• ensure the purchaser of the Divestiture Business has all the necessary associated assets and rights to compete effectively with Viva Energy in the supply of retail fuel in South Australia and in a number of local areas in South Australia;
• maintain the economic viability, marketability, competitiveness and goodwill of the Divestiture Business prior to divestiture; and
• provide for the effective oversight of Viva Energy’s compliance with the Undertaking.