Ampol’s proposed acquisition of EG Australia has received a positive update from the Australian Competition and Consumer Commission (ACCC). According to RBC Capital Markets analyst Gordon Ramsay, the ACCC’s latest assessment is encouraging for Ampol. Ampol is Australia’s largest petrol retailer and refiner, operating across the country. EG Australia is a prominent player in the petrol and convenience retail sector.
The ACCC has reduced the number of EG sites under further review to 54, a significant drop from the 115 sites flagged in its preliminary assessment on January 21. The commission continues to assess the competitive impact in 20 additional overlapping local markets. The discrepancy in site numbers arises from different market definitions, with Ampol using a 5km radius for metro sites and 10km for regional sites, while the ACCC may apply broader or narrower definitions based on traffic routes or natural barriers.
Ramsay noted that the updated assessment aligns more closely with Ampol’s initial proposal to divest 19 sites. He also observed that the ACCC’s current assessment does not seem to consider the competitive impact of Ampol’s U-GO self-serve unmanned retail model.
Ramsay anticipates the final number of sites requiring divestment will be higher than 19, but less than 54. This development suggests a clearer path toward regulatory approval for Ampol’s acquisition of EG Australia, potentially streamlining the process and reducing the need for extensive divestitures.
