Competition watchdog wants more information about Caltex's proposed takeover of Mobil's fuel terminal in Queensland
By <a href="mailto:rzivkusic@acpmagazines.com.au“>Ruza Zivkusic | December 7, 2010
The Australian Competition and Consumer Commission (ACCC) is seeking further information from stakeholders following its concerns about Caltex’s acquisition of Mobil’s fuel terminal at the Port of Gladstone in Queensland.
Caltex and Mobil have operated their terminals under a joint agreement since 1997 and separately supply fuel to their own retail sites.
Mobil, major refiner and wholesaler of petrol, diesel and automotive LPG in Australia, is now proposing to sell its assets at the Gladstone terminal to Caltex, which has space that could be suitable for additional new build tanks.
The terminals are used for storage of refined petroleum products, located near their source of supply.
A large proportion of the fuel supplies in the Gladstone region is diesel, mainly used by mining, industrial and transport customers.
The ACCC believes the proposed sale would “substantially” lessen competition in the market for the supply of import-capable petrol and diesel terminal services in the Gladstone region.
“In particular, the ACCC is concerned that acquisition of the Mobil assets by Caltex will substantially reduce competition by foreclosing the likelihood of effective entry by independent fuel suppliers into the Gladstone region market for the foreseeable future,” it says.
The ACCC will finalise its view on January 27.
The issue is open to consultation until December 23.