The Australian Competition and Consumer Commission (ACCC) has released a Statement of Issues outlining its concerns about Caltex Australia’s
(ASX:CTX) proposed acquisition of 46 service stations from Milemaker Petroleum in Victoria.
The ACCC’s preliminary view is that the acquisition may substantially lessen competition for the retail supply of petrol in Melbourne.
It noted that Milemaker is a significant independent chain in Victoria, with generally lower prices than Caltex, is quick to discount and often slow to respond to large price increases.
The competition watchdog also says most consumers may not even know about Milemaker because its sites are branded ‘Caltex’ and are, therefore, difficult to tell apart from Caltex’s company-operated sites. But MileMaker sets its own retail prices independently of Caltex.
The ACCC will accept further submissions from interested parties until 30 March, and expects to make its final decision on 20 April 2017.
This morning, shares in Caltex are tracking 1.23% lower at $28.12.
