- Arrow Energy Limited
SummaryShell Energy Holdings Australia Limited and PetroChina International Investment Company Limited proposed to acquire Arrow Energy Limited by way of a 50:50 joint venture company.
Shell Exploration Company B.V. held a 30% interest in Arrow's Australian coal seam gas tenements and a 10% interest in Arrow's international assets. Arrow's international assets (and certain domestic assets) were excluded from the proposed acquisition.
Market definitionThe ACCC did not consider it necessary to form a definitive view in relation to market definition in this review, since competition concerns were unlikely to arise irrespective of the market definition adopted. For the purpose of its assessment, the ACCC considered the proposed acquisition in the context of the following markets:
- the southern Queensland market for the wholesale supply of natural gas; and
- the northern Queensland market for the wholesale supply of natural gas.
Competition analysisThe ACCC noted that in the absence of the proposed acquisition:
- Shell's only natural gas interests in Queensland would consist of its 30% interest in Arrow's tenements; and
- Arrow's future gas supply was likely to be predominantly directed toward export LNG projects and its own downstream energy interests, rather than supply to domestic gas customers.
In light of the above and taking into account the significant competing gas suppliers and abundant gas reserves that would remain post-acquisition, the ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in any relevant market.
|10/03/2010||ACCC commenced review under the Merger Review Process Guidelines.|
|25/03/2010||Closing date for submissions from interested parties.|
|13/04/2010||ACCC announced it would not oppose the proposed acquisition.|