ACCC nod for Viva Energy’s LOC Global buyout
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The news: The competition regulator has approved fuel refiner and retailer Viva Energy’s acquisition of the remaining 50% stake in fuel retailing joint venture LOC Global.
The numbers: Viva had proposed to acquire the stake in the joint venture, which operates 105 Liberty branded fuel and convenience sites across all states and territories, from partner New World Corporation.
The Australian Competition and Consumer Commission (ACCC) has agreed to the proposed deal subject to Viva divesting 14 LOC retail sites to Solo Oil, a fully-owned subsidiary of New World Corp. Another 13 LOC sites do not form part of the deal and will be operated by Solo.
Separately, Viva said it will now acquire 88 active sites and 10 planned sites as part of the deal.
The context: Viva, which supplies about a quarter of Australia’s liquid fossil fuels, said it expects the transaction to complete during the first quarter of 2025. This follows its $1.2 billion acquisition of OTR Group fuel and convenience sites earlier this year.
The ACCC said the conditional approval addresses its concerns arising from the overlap in retail fuel supply between Viva and LOC in several states. It also looked at competition in wholesale petrol supply in the Adelaide market.
What they said: “Without the divestiture, the ACCC was concerned the proposed acquisition could increase prices and reduce service offering, particularly in Adelaide and certain local areas in Darwin, regional Queensland and regional Victoria,” ACCC Commissioner Philip Williams said.
The sources: ACCC media release, ASX announcement
