Viva Energy has secured approval to acquire the remaining 50% stake in LOC Global from New World Corporation, following an agreement to sell more than a dozen retail fuel sites to address competition concerns.
The Australian Competition and Consumer Commission (ACCC) announced it would not oppose the transaction after Viva Energy committed to a legally binding undertaking.
LOC Global, a joint venture between Viva Energy and New World Corporation, operates over 100 ‘Liberty’-branded fuel and convenience stores across Australia. With Viva Energy already running an extensive national fuel network, including brands such as Coles Express/Reddy Express and OTR, the acquisition raised concerns about overlapping operations in multiple states.
To alleviate these concerns, Viva Energy agreed to divest 14 LOC sites to Solo Oil Corporation, a newly established subsidiary of New World Corporation. The divestment will take place either before or at the same time as the acquisition.
ACCC Commissioner Philip Williams highlighted the competition regulator’s initial apprehension, stating: “Without these divestments, we were concerned the acquisition could lead to higher prices and reduced service levels, particularly in Adelaide, parts of Darwin, and regional areas in Queensland and Victoria.”
He added, “With the agreed divestments, Solo Oil will emerge as a strong, independent competitor to Viva, ensuring healthy competition in the market.”
This development follows a similar move by Viva Energy last December, when it received ACCC approval to acquire the OTR Group. At the time, Viva addressed competition concerns by agreeing to divest 25 Coles Express locations in South Australia.
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