ACCC questioning Woolworths buy of BP Australia

Company News

by Jessica Amir

The Australian Consumer and Competition Commission (ACCC) has announced preliminary concerns about Woolworths (ASX:WOW) proposed purchase of BP Australia as it could impact consumers petrol prices.

The ACCC says the proposed acquisition could substantially lessen competition for consumer fuel supply in metropolitan areas.

The body says Woolworths already influences retail fuel market prices by either leading with price reductions or quickly following other retailers by reducing their prices.

It also raised another concern about the purchase effecting convenience groceries.

Woolworths says it will work with BP and the competition regulator to progress the clearance.

Shares in Woolworths (ASX:WOW) are trading 0.56 per cent lower to $26.82.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.