The Australian Competition and Consumer Commission (ACCC) is...

The Australian Competition and Consumer Commission (ACCC) is scheduled to release its decision on the proposed Caltex takeover of 302 service stations currently owned by a Mobil Oil entity on December 2.

The proposed takeover was announced in June and has been under review by the ACCC because of potential competition concerns.

The ACCC has twice deferred its decision to allow Caltex more time to provide information that would satisfy the competition concerns.

The regulator has flagged competition concerns with 22 Mobil sites in the takeover and reservations about a further 45 sites.

While the main focus of the ACCC’s review has focused on the competitive dynamics of the wholesale and retail petrol markets, the link between Caltex and Woolworths is also an issue.

Independent fuel retailers have opposed the takeover because it could substantially increase Woolworths market share if Caltex was to reach agreements with the retailer to onsell some of the acquired Mobil sites.
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Woolworths currently operates 540 service station sites under a co-branding agreement with Caltex.

Caltex already has the largest market share in the wholesale supply of unleaded petrol in NSW, Victoria, Queensland and South Australia.

After the acquisition it would have a 55 per cent market share in NSW, 46 per cent in Queensland, 43 per cent in South Australia and 38 per cent in Victoria.

Coles alliance with Shell provides a significant direct competitor to Woolworths but is also part of the problem for the ACCC as any increase in sites available to Woolworths through the Caltex takeover could affect the viability of independent retailers and franchisees.