The Australian Competition and Consumer Commission (ACCC) announced that it has delayed its consideration of BP’s proposed acquisition of Woolworth’s service stations, this time at the request of both parties involved.
Following a previous delay where the proposed decision date was pushed from October to November, the decision has been delayed yet again.
ACCC chairman Rod Sims said it was a significant decision for the Australian petrol market.
“The extension to the consideration period will allow the ACCC to consider further information from the parties,” he said.
“This potential transaction involves complex, extensive data analysis of fuel prices across all fuel sites in Australia over a number of years, and it’s vital we take the time to thoroughly assess its likely impact.”
A statement from BP said the company remained confident that clearance will be granted.
“We will continue to work with the ACCC to progress through the process and secure approval for the transaction,” it said.
“In pursuing this transaction, BP seeks to lead a new chapter in Australia’s retail story and transform the convenience sector.
“Leveraging BP’s global expertise in retail convenience, BP will bring a new offer to Australian consumers designed to consistently beat their expectations.”
In August 2017, the ACCC released a statement of issues regarding the acquisition and outlined that the acquisition may harm competition cross metro areas for retail fuel supply.
There is expected to be a new decision on December 14th.
What amazes me is that even with the ACCC highlighting BP’s uncompetitive nature, and the fact this is a major sticking point in the acquisition review, BP still refuse to change their behaviour and lower prices to be competitive. You’d think they would change behaviour to show the ACCC they can change. In the south of Brisbane and Logan areas, they are consistently higher than any other fuel outlet and rival Coles as the most expensive sites. The ACCC should simply make a decision now and say NO, it is not in the consumers interests. Remember when Franklins Supermarkets were sold off. Woolies bought all the best performing stores, and then went about increasing prices as the discounter (Franklins) was no longer around to hold them accountable. It has taken 15 years for Aldi, and then Coles to really change the landscape and for consumers to see competition again. ACCC – please do not approve the merger.