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

Friday 10th July 2015

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.co.nz

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