Australian competition regulator approves Viva Energy acquisition of OTR Group (updated)

Waypoint REIT

13/12/2023 23:07

(Updates throughout with details on regulator's comments)
       Dec 14 (Reuters) - The Australian competition regulator
on Thursday approved Viva Energy's  VEA.AX  acquisition of
convenience store operator On the Run (OTR Group) from
Adelaide-based Peregrine Corp for A$1.15 billion ($765.90
million).
    The Australian Competition and Consumer Commission's (ACCC)
approval comes after a court enforceable undertaking by Viva
Energy to divest 25 Coles Express sites in South Australia.
    In May this year, Viva completed the acquisition of Coles
Express convenience stores, strengthening its footprint
nationwide compared to its rival Ampol Ltd  ALD.AX .
    The ACCC's review focused on areas in which the OTR Group
and Viva's operations overlapped, which was predominantly in
South Australia and the Northern Territory.
    The regulator was concerned Viva's acquisition of OTR Group
"would combine the largest retail fuel network in South
Australia with Viva Energy's retail network", providing Viva
Energy with an extended network significantly larger than its
next largest rival.
    To alleviate the concerns, Viva Energy will sell 25 Coles
Express sites in South Australia to Chevron  CVX.N , which the
regulator has approved.
    In exchange, Viva Energy will receive 13 Chevron sites
located in Queensland, New South Wales and Western Australia,
the regulator said.
    "The ACCC considers that the undertaking given by Viva
Energy will create a viable, effective, standalone, independent
and long-term competitor," ACCC Commissioner Stephen Ridgeway
said.
    

($1 = 1.5015 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))