The Australian Competition and Consumer Commission has referred Ampol's (ASX:ALD) Ampol Retail proposed acquisition of EG Group Australia and EG AsiaPac Holdings—collectively known as EG Australia—for a detailed Phase 2 review, signaling concerns over competition in the fuel retail sector.
The ACCC’s decision means the acquisition has not been approved in its initial Phase 1 assessment.
Both Ampol and EG Australia operate extensive networks selling petrol, diesel, and convenience products across all Australian states and territories.
ACCC Commissioner Dr Philip Williams said the acquisition "would combine two major fuel retailers in Australia" and could substantially lessen competition in multiple local and metropolitan markets.
The regulator has identified 115 EG sites where the merger could reduce competition and raised concerns about metropolitan areas including Brisbane, Canberra, Melbourne, and Sydney.
Although Ampol has offered to divest 19 retail fuel sites, the ACCC considers this proposal insufficient to address the identified local and metropolitan-wide competition issues.
As a result, the acquisition will undergo a more in-depth assessment in Phase 2, with no conclusions yet reached.
The ACCC is inviting submissions from interested parties in response to its Phase 2 notice by Feb. 4.