The Commerce Commission has granted clearance for the proposed merger between fuel retailers NPD and Gull.
In a statement today, the Commerce Commission said it had granted clearance for Astra Energy Group Limited to acquire Gull’s parent company, GNZ Holdco Limited, along with NPD Group Investments Limited and its subsidiaries.
The approval clears the way for the two fuel retailers to combine operations into a nationwide network of around 240 sites stretching from Invercargill to Kaitaia.
Both brands are set to remain in place. Gull stations are more common in the North Island, and NPD in the south.
Commerce Commission chair John Small said the watchdog carried out a detailed investigation before approving the deal, after initially raising concerns the merger could affect competition in the retail and wholesale fuel markets.
"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 merged company would be "constrained in the retail and wholesale supply of fuel", Small said, and would continue to face competition from major fuel brands as well as other independent suppliers, limiting its ability to raise prices.
He said the investigation also examined whether the merger could make coordination between fuel companies more likely, potentially leading to higher prices, but concluded the deal would not change market conditions.
The companies first announced plans to merge in December last year, saying the move would allow them to drive down pump prices for Kiwis.
The South Island-based Sheridan family will be the largest single shareholder, with the balance hed by Australasian private equity firm Allegro Funds, the current owner of Gull.
NPD chief executive Barry Sheridan is set to lead the combined company as CEO, and Allegro Funds’ Fay Bou will be chair.
Sheridan welcomed the deal, saying it would strengthen the companies’ ability to keep prices competitive for motorists.
“At a time when every cent matters, Gull and NPD joining together will make our ability to support lower fuel prices in NZ even stronger,” Sheridan said.
He said the combined entity would also develop a national fleet service for commercial customers, alongside its retail fuel operations.
Gull’s Mt Maunganui fuel import terminal and NPD’s fleet of fuel trucks are expected to form part of the new nationwide supply network.
"It’s going to be exciting to see the ‘Gull effect’ and ‘NPD effect’ on fuel competition deliver even more through the combined business, a company with national scale," said Gull chief executive Dan Gilbert.
"Beyond pricing, it brings resilience to fuel supply that benefits motorists everywhere."
The Commerce Comission said its full written decision into the merger would be available on its website in coming days.
SHARE ME