Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

ACCC delays call on BP, Woolies fuel deal

Petrina Berry  |  04 Oct 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

BRISBANE - [AAP] The competition watchdog has delayed its decision on BP's $1.8 billion acquisition of more than 500 service stations owned by Woolworths (ASX: WOW).

The Australian Competition and Consumer Commission said on Wednesday that it needed more time for "data analysis, and to consider information provided by parties and market participants."

It was due to deliver its ruling on the deal on October 26, but that has now been pushed back to November 30.

In August, the ACCC said it was concerned that motorists could end up paying more for fuel if the takeover went ahead.

ACCC chairman Rod Sims said at the time that the deal could substantially reduce competition in metropolitan areas by reducing the number of rivals in the fuel market.

Woolworths agreed in December 2016 to sell its 527 petrol stations and 16 development sites to BP, which already owns 350 retail sites in Australia and supplies a further 1,050 BP-branded sites.

If the deal gets the green light, BP and Woolworths plan to jointly roll out up to 200 new format convenience stores, rivalling Caltex and Shell-owner Viva Energy in the fuel convenience store market.

BP has also previously said it plans to keep the Woolworths 4 cent per litre discount offer.

The acquisition also requires approval from the Foreign Investment Review Board.

Shares in Woolworths were down 48 cents, or 1.9 per cent, at $24.52 at 1450 AEDT, in a weak market.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend