Viva Energy has been given a green light to the remaining 50 per cent interest in LOC Global from New World Corporation after it agreed to divest more than a dozen retail sites.
The Australian Competition and Consumer Commission (ACCC) said it will not oppose the proposed acquisition after accepting a court-enforceable undertaking from Viva Energy.
LOC is a joint venture between Viva Energy and NWC that operates over 100 ‘Liberty’ branded retail fuel and convenience sites in the country.
As Viva also operates a nationwide fuel supply chain with retail fuel and convenience sites, including Coles Express/Reddy Express and OTR, the LOC deal would result in an overlap of fuel supply in several states.
To address the ACCC’s concern about the overlap, Viva agreed to divest 14 LOC sites to Solo Oil Corporation, a new wholly owned subsidiary of NWC. The divestment will occur prior to or on the same day of the acquisition.
“Without the divestiture, the ACCC was concerned the proposed acquisition could increase prices and reduce service offering, particularly in Adelaide and in certain local areas in Darwin, regional Queensland, and regional Victoria,” ACCC commissioner Philip Williams explained.
“We consider with the divestments, Solo will become a viable, effective, and long-term standalone competitor to Viva,” he added.
Last December, Viva Energy received ACCC’s permission to acquire OTR Group after it agreed to divest 25 Coles Express locations in SA.
