The Australian Competition and Consumer Commission has escalated its scrutiny of Ampol's (ASX:ALD) proposed acquisition of EG Australia, issuing a notice of competition concerns as part of its mandatory Phase 2 merger review.
The regulator has flagged 54 specific EG Australia fuel sites across 51 local areas that may lessen competition, a reduction from the 115 sites initially earmarked for closer examination in January.
Despite this reduction, competition concerns persist, with an additional 20 local areas currently under assessment without a preliminary determination being finalised.
Beyond individual site analysis, the ACCC is investigating the broader metropolitan impacts of the merger in major capital cities.
Regulatory focus rests heavily on potential market concentration, particularly in Canberra, where the combined entity would hold a 31 per cent market share by site count.
Concerns also extend to Brisbane, Melbourne, and Sydney, where post-transaction market shares are projected at 21%, 19%, and 20% respectively.
The regulator fears this concentration could lead to higher prices for consumers.
In response, Ampol has acknowledged the ACCC's preliminary assessment, stating it remains confident in its position and intends to work constructively with the authority to address these issues.
Both Ampol and EG Australia have been granted the opportunity to respond to the issues raised in the notice.
The ACCC is required to issue a final determination regarding the proposed acquisition by June 5, a decision that will profoundly shape the landscape of the Australian fuel retail market.