The competition watchdog has raised concerns over Elgas' proposed purchase of Wesfarmers Limited (ASX:WES) Kleenheat Gas' east coast LPG business. The Australian Competition and Consumer Commission has called for comment on the acquisition and noted it could reduce competition and hike prices.
The ACCC says its preliminary view is the proposed acquisition raises significant competition issues for the distribution of LPG to customers in a number of different markets.
The regulator notes market inquiries have identified concerns the transaction would remove Kleenheat as a significant competitor to Elgas and Origin.
Further submissions have been called for before June 26 with the ACCC due to make a final call on the proposed acquisition by the July 24.
Wesfarmers reported a net profit of $1.4 billion in the first half of the 2014 financial year.
