ACCC seeks submissions on Viva Energy divestiture plans

The news: Fuel supplier Viva Energy has offered a divestiture proposal to the competition watchdog over its proposed acquisition of fuel retailer, OTR Group.

The numbers: Under the court-enforceable proposal, Viva Energy must divest 24 Coles Express sites in Adelaide and another in Ceduna on the Eyre Peninsular, to an ACCC-approved purchaser. Viva Energy has proposed Chevron, which has one retail site in South Australia's Port Augusta, as the buyer of the divestiture sites.

The context: Viva Energy and its related companies operate a nationwide fuel supply chain with retail sites in each Australian state and territory, including Coles Express convenience sites. Viva Energy initially proposed to divest 23 of its 32 retail sites in Adelaide. However, the number of sites to be divested rose to 24 in Adelaide and one site on the Eyre Peninsula, in response to concerns raised by the Australian Competition and Consumer Commission. ACCC Commissioner Stephen Ridgeway said public feedback on the proposal is sought by 27 November on whether Viva’s divestiture to Chevron would create an effective, independent and long-term competitor to a combined Viva and OTR.