The ACCC has referred Ampol’s acquisition of EG Australia to a detailed Phase 2 review, citing concerns that the deal could significantly reduce competition in key Australian fuel markets.
- ACCC moves Ampol-EG Australia acquisition to Phase 2 review
- Concerns over reduced competition in Brisbane, Canberra, Melbourne, Sydney
- 115 EG sites identified with potential competition issues
- Ampol’s proposed divestment of 19 sites deemed insufficient
- First Phase 2 review under new mandatory merger control regime
ACCC Steps Up Scrutiny
The Australian Competition and Consumer Commission (ACCC) has escalated its review of Ampol Retail Holding Pty Ltd’s proposed acquisition of EG Group Australia and EG AsiaPac Holdings, moving the matter from an initial Phase 1 assessment to a more rigorous Phase 2 review. This decision signals significant regulatory concerns about the potential impact of the deal on competition within Australia’s retail fuel market.
Both Ampol and EG Australia are major players in the retail fuel sector, operating petrol and diesel outlets alongside convenience stores across all Australian states and territories. The ACCC’s preliminary findings suggest that combining these two entities could substantially lessen competition in several local markets, particularly in metropolitan areas such as Brisbane, Canberra, Melbourne, and Sydney.
Competition Concerns and Divestment Offer
ACCC Commissioner Dr Philip Williams highlighted that the acquisition would unite two significant fuel retailers, raising red flags about market concentration. The regulator identified 115 EG sites where competition could be notably diminished. Although Ampol offered to divest 19 retail fuel sites to address these concerns, the ACCC found this proposal inadequate to resolve the broader competition issues at both local and metropolitan levels.
As a result, the ACCC has not approved the acquisition at this stage and will conduct a detailed Phase 2 assessment, which can last up to 90 business days. This extended review period allows the ACCC to thoroughly investigate the potential effects on competition and consider submissions from stakeholders, with public comments invited until 4 February 2026.
New Merger Control Regime in Action
This case marks the first instance of a Phase 2 review under Australia’s new mandatory merger control regime, which came into effect on 1 January 2026. Under this regime, businesses must notify the ACCC of acquisitions meeting certain thresholds and await approval before proceeding. The ACCC’s ability to swiftly escalate cases to Phase 2 reflects a more proactive approach to safeguarding competition in critical sectors like fuel retail.
The outcome of this review will be closely watched by market participants and investors, as it could set a precedent for how future large-scale mergers in the energy and retail sectors are handled under the new regulatory framework.
Bottom Line?
Ampol’s acquisition faces a tough regulatory path ahead, with competition concerns likely shaping the deal’s final form or viability.
Questions in the middle?
- Will Ampol revise its divestment offer to satisfy the ACCC’s concerns?
- How might a prolonged Phase 2 review affect Ampol’s strategic growth plans?
- Could this decision signal tighter regulatory scrutiny for future fuel retail mergers?