Caltex will not be opposed by the Australian Competition and Consumer Commission (ACCC) in its bid to acquire a chain of Victorian service stations.
The ACCC has made the decision not to oppose the proposed acquisition worth $95 million, which will result in Caltex taking control of the operation of 46 different service station sites.
ACCC chairman Rod Sims said Milemaker has a competitive pricing strategy resulting in motorists shopping around for a cheap deal.
“We know from our ACCC petrol reports and market studies that prices are cheaper for drivers where there are vigorous competitors like Milemaker in the market,” he said.
“While the ACCC concluded that Milemaker contributes to downwards pressure on fuel prices in Melbourne there are also several other vigorous competitors with more Melbourne sites than Milemaker. We believe the presence of these retailers should limit this loss of competition and maintain competitive pressure.
“This was a difficult decision, as competition will be reduced. However, the small size of Milemaker and limited direct competitive overlap with Caltex led the ACCC to conclude that the effect on competition is not likely to be substantial. A ‘substantial’ lessening of competition is required for an acquisition to breach the Competition and Consumer Act.”
Caltex CEO Julian Segal said Milemaker was a successful business that had been a Caltex-branded reseller for more than 32 years.
“I am pleased that this high-quality business will remain Australian-owned and managed, as Caltex is the only independent transport fuel and convenience company listed on the Australian Securities Exchange,” he said.
A spokesperson for Caltex said the purchase and takeover of the Milemaker sites will be completed next week.
Caltex also recently announced that it has opened two more of The Foodary sites, one in Padstow NSW and another in Cockburn WA.
A spokesperson for Caltex said the Padstow site will serve many local customers as well as commuter traffic from the South.
“Located South West of Sydney just off the M5, the site experiences high volumes of traffic and will become a great destination for the commuting traffic, surrounding businesses and local neighbourhood,” they said.
The spokesperson for Caltex said they are planning similar re-vamps for some of the acquired Milemaker sites.
A Caltex spokesperson said The Foodary is a pilot store and the company’s first fuel and convenience site to sport the new brand name and store look and feel.
“First impressions count, and the first thing you’ll notice about The Foodary is that it doesn’t look or feel like a traditional petrol station,” he said.
“Everything from the modern interior design, layout, services and real food on offer will excite and surprise.”