Caltex Australia’s $95 million deal to buy Victoria’s Milemaker Petroleum has run into trouble with the competition regulator, which is worried it may cut competition of petrol supply in Melbourne and force up prices.
The takeover of the independent chain of 46 sites “may remove a vigorous and effective competitor in retail fuel in Melbourne,” Rod Sims, chair of the Australian Competition and Consumer Commission said on Thursday.
Caltex said it is “working with the ACCC with a view to addressing the preliminary issues” raised by the regulator and it is “confident” of meeting the concerns.
But Mr Sims signalled the regulator’s objections to the deal may not be easily overcome.
“We’ve put out a statement of issues which always means whether or not we seek to oppose the merger is yet to be decided,” he said.
Mr Sims’ wariness about the deal was welcomed by motorist representative RACV, which said its analysis showed Milemaker sites had consistently lower prices than average in their area.
Full Content: The Sidney Morning Herald
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