The New Zealand Commerce Commission (NZCC) has provided clearance for Ampol to acquire New Zealand’s Z Energy Limited.
The acquisition remains subject to Ampol obtaining Overseas Investment Office (OIO) approval, and the Z Energy shareholder vote, which is scheduled for 25 March.
Under the clearance provided by the NZCC, Ampol has nine months from the date of completion of the Z Energy transaction to divest Gull.
Ampol announced earlier this week that it had entered into a binding agreement with Allegro for the sale of Gull for around NZ$509 million as well as the assumption by Allegro of around $63 million of leases and debt like items. The acquisition of Gull by Allegro is subject to approvals by the NZCC and the OIO.
Matt Halliday, Managing Director and CEO, Ampol, was understandably pleased with the NZCC decision.
“We welcome the decision by the NZCC, which recognises that our commitment to fully divest Gull addresses the potential competition law issues. The NZCC decision is an important milestone towards the successful completion of the transaction to acquire Z Energy by the end of the first half of 2022.”
The acquisition is a highly strategic opportunity for Ampol, with Z Energy the market leader in New Zealand, with a 40 per cent share of fuel sales. This is in contrast to the Gull business, which accounts for seven per cent of fuel sales.
The deal will create the number one Trans-Tasman fuel player with 2,400 fuel sites and 23.5 billion litres of fuel sales annually.