Source: Radio New Zealand
Gull and NPD’s combined 240 sites will maintain their brands. RNZ / Dan Cook
The Commerce Commission has greenlit the merger of fuel companies Gull and NPD.
The competition regulator said it was satisfied the proposed merger was not likely to substantially lessen competition in the market.
Under the merger proposal, Gull and NPD’s combined 240 sites would maintain their brands.
The South Island-based Sheridan family would own half, with Barry Sheridan, current NPD chief executive, to lead the new company.
Australian-based private equity firm Allegro Funds, owner of Gull, would hold the other half.
The new parent company would be called Astra Energy Group.
“Our investigation included looking at the markets within which NPD and Gull currently operate and assessing whether there would still be adequate competitive alternatives post-merger to constrain the new company’s ability to raise prices and reduce the quality of its service,” commission chair John Small said.
“Following this work, we are satisfied that the proposed merger is not likely to substantially lessen competition in any market in New Zealand in which the parties compete, or are likely to compete in future,” Small said.
The commission said it also considered whether the merger could lead to the merged entity or its competitors working together to exercise their collective power.
However, it concluded it would not change conditions in a way that made coordination more likely.
Small said the merged entity would likely be constrained in the retail and wholesale supply of fuel by the presence of other competitors, such as major players Z, BP and Mobil.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand