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 presents the Market Outlook and company news. She joined FNN in January 2017. She has been in broadcast journalism for over five years. She has worked as a journalist with Sky News Business, ABC 1 and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She is also a qualified financial planner and a Masters of Applied Finance student.