TOTAL

Oil. The two parties to the deal, both of which participate at the wholesale and retail levels of the petroleum products industry, were asked to provide information to the commission.

Other participants at the wholesale level include Petrojam, Gulfstream Petroleum SRL (Texaco), Rubis Energy Jamaica Limited, MZ Holdings Limited (Cool Oasis), Future Energy Source Company Limited (FESCO), Johnson’s Petroleum Company Limited and Jampet.

As noted by FTC, each wholesale supplier sells only to its respective retailers so that, for example, Texaco sells only to Texaco service stations.

There are approximately 250 retail outlets where each retailer is supplied by only one wholesale or marketing company, said the FTC. Additionally, some retail outlets are owned by or are franchises of marketing companies.

“While there are 250 outlets, they do not all compete with each other by virtue of their location. The shorter the distance between two service stations, the more likely they are to compete with each other,” said the competition watchdog.

“Accordingly, the investigation aims to identify also those regions that are likely to be adversely affected by the merger, specifically regions in which competition will likely be eliminated between the two parties,” the FTC said.

In February, the Financial Gleaner reported that Total Jamaica Limited appeared poised to take the top spot in the local petrol market in terms of the number of stations that it operates, with the announced agreement to acquire rival Epping.

At the time Total was operating 57 stations, and the acquisition of the 17 operated by Epping Oil Company would have pushed the network to 74.

Total first entered the Jamaican market about 15 years ago when it acquired the National gas station network owned by Roy DeCambre, a deal that was said at the time to give Total around a 10 per cent share of the market. Total later increased its market share and network with the acquisition of Esso stations.

DeCambre is currently fighting Total Jamaica in court over what he claims as the French company’s failure to pay for seven of National’s properties, an allegation that Total denies. He is seeking compensation of $6.4 billion.