The Commerce Commission says it has received an application from discount fuel retailers NPD and Gull to merge their national operations.
The merger would create a network of 240 fuel stations, making it the third-largest behind Z Energy and BP.
The companies announced their proposed merger on Christmas Day, saying each site would retain its distinctive brand – Gull sites are most common in the North Island, and NPD in the South Island.
The South Island-based Sheridan family would own 50% of the merged company, with Barry Sheridan, the current NPD owner and chief executive, set to become group CEO.
Australian private equity firm Allegro Funds, which owned Gull, would hold the remaining 50%.
The Commission said it would only grant clearance if it was satisfied the merger would not substantially lessen competition in the New Zealand market, either now or in the future.
It said its investigation of the proposed merger was at a preliminary stage based on the material that it has received from both companies, but other issues could yet emerge as its investigation progresses.
Interested parties have until February 3, 2026 to submit comments on the proposed merger.
The Commission has set a March 16, 2026 deadline to either approve, or decline the merger.
The Automobile Association believed a proposed merger between two fuel companies should drive down pump prices.
AA principal policy advisor Terry Collins had previously said both companies had a low-cost business model.
"What that means is that the savings are passed onto customers. When Gull first arrived with that model in New Zealand it became known as the Gull effect because it dropped the prices and competitors had to match it," he said.
"Now you've got two strong companies with a similar model seeking to merge their business and utilise their assets a lot more efficiently. If they do that, then we'll obviously see lower prices as they pass them on, but how much savings they can make and pass on is yet to be seen."
Collins believed merging would be a smart business move for both companies.
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