ACCC eyes fuel, grocery price rise concerns in Viva’s OTR takeover
The competition regulator says the proposed sale of almost two dozen petrol stations in South Australia may not be enough to settle its concerns about Viva Energy’s acquisition of the Peregrine Corporation’s OTR Group.
The ASX-listed energy group said in April that it had reached an agreement to buy OTR, which operates the 205-strong network of On the Run outlets, for $1.15 billion from Peregrine, owned by the Shahin family.
Viva Energy chief executive Scott Wyatt and OTR Group’s Yasser Shahin in April. Approval from the competition regulator may present risk to Viva Energy’s plan to acquire OTR Group. Ben Searcy
As part of that deal, Viva said it would divest 23 sites in Adelaide, where OTR is one of the largest operators of petrol stations and convenience retail. Viva, which runs Shell-branded outlets across the country, is also acquiring OTR’s Smokemart and Giftbox retail chains, as well as a wholesale fuel distribution business and the Ausfuel Group, which was owned by Chevron until March.
In a notice to market participants, the Australian Competition and Consumer Commission said it would consider whether the deal would lead to higher retail fuel prices and higher convenience and grocery prices. It is also considering whether the purchase would be likely to affect Viva’s incentives to supply wholesale customers who are rivals to OTR’s retail business.
“The ACCC has not yet formed a view as to the nature and extent of any competition concerns with respect to the proposed acquisition, or whether they are capable of being addressed by [the] divestiture proposal,” it reads.
The Australian petrol retailing and convenience market is in the midst of significant change, with another major company in the sector, 7-Eleven, up
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