ComCom sees mid-December decision on Z's Chevron acquisition

ComCom sees mid-December decision on Z's Chevron acquisition

By Paul McBeth

July 10 (BusinessDesk) - The Commerce Commission has indicated it expects to make a decision on whether Z Energy will be cleared to buy the rival Caltex petrol station chain by mid-December.

The regulator has advised it expects to make a final decision on Dec. 18, Wellington-based Z said in a statement. The petrol station chain said the date is indicative only, and it's still pushing for a Nov. 30 transition date.

"This will enable Z to be well positioned in the event there is a decision earlier than the indicative," it said.

In its application to the regulator, made public this month, Z said its planned $785 million purchase of rival Chevron New Zealand's Caltex-branded network won't drive up prices at the pump because the target doesn't have retail price-setting power and the market will remain highly competitive.

A Caltex factsheet says it has 147 outlets in New Zealand, supplies fuel to the aviation and shipping industries and is a partner in the AA Fuelcard loyalty scheme. Z Energy is a shareholder in the rival FlyBuys scheme and its website says it has more than 200 outlets.

Z shares were unchanged at $5.89, and have climbed 27 percent this year.

(BusinessDesk)

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