ACCC stalls on BP petrol buyout

THE consumer watchdog has delayed its final decision on BP’s $1.8 billion deal to buy Woolworths’ 527 petrol stations.

A verdict was initially due on October 26, but the Australian Competition and Consumer Commission now says it is deferring a decision until November 30.

Announcing the delay yesterday, the competition regulator said it needed more time for the analysis of data and to consider information provided by the businesses and other interested parties.

Under the proposed deal, BP service stations would accept discount fuel vouchers issued by the supermarket chain and participate in its loyalty program.

In August, the ACCC proposed to approve the deal in a draft decision released for public comment.

The decision was welcomed by independent supermarkets and fuel retailers.

At the time, a BP Australia spokeswoman said the fuel retailer was “pleased” with the ACCC’s views about the merits of the deal.

But in its statement of issues, the ACCC said it was concerned that the deal might lessen competition in fuel retailing.

It said it was concerned BP “would not follow Woolworths’ pricing strategy”.

The deal would also enable remaining fuel retailers to coordinate price increases more effectively, the ACCC said.