Viva Energy‘s acquisition of On The Run Group has brought attention to rival company Ampol and its corporate activity. Some speculate that Viva’s recent deal may prompt Ampol to consider more mergers and acquisitions as it seeks to diversify further away from fuel refining amidst an anticipated rise in electric vehicles.
Currently, Ampol is reportedly looking at two acquisition targets in the chemicals department, with some believing that it may consider purchasing the chemical distribution business Ixom, which is on the market.
However, Viva Energy may have a geographic advantage in acquiring Ixom due to its ownership of the Geelong Oil Refinery and the recent purchase of LyondellBassell Australia. Ampol had previously considered purchasing On The Run Group but found the asking price to be too high.
Despite challenges in replicating its operations in South Australia, Ampol’s acquisition of New Zealand fuel retail rival Z Energy has been successful, making further corporate activity more likely in the coming months.
Investment banks Macquarie Capital and Goldman Sachs are believed to be working closely with Ampol. Investment bank UBS has described Viva Energy’s acquisition of On The Run Group as transformational but has cautioned that competition risks await.
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