ACCC Narrows Competition Concerns in Ampol’s $1.1B EG Australia Deal

ACCC’s Updated Assessment

The Australian Competition and Consumer Commission (ACCC) has published a summary update on its detailed Phase 2 review of Ampol Limited’s proposed $1.1 billion acquisition of EG Australia. The regulator’s latest assessment narrows the number of EG Australia retail fuel sites raising competition concerns from 115 to 54, spread across 51 local areas nationwide.

This reduction signals progress in the ACCC’s investigation but underscores ongoing scrutiny, particularly in major metropolitan markets where Ampol’s post-acquisition market share would be significant. The ACCC continues to evaluate an additional 20 local areas where competition impacts remain uncertain.

Focus on Metropolitan Markets

Brisbane, Melbourne, Sydney, and Canberra remain focal points of the ACCC’s review. In these cities, Ampol’s combined site share with EG Australia would range from 19% to 31%, positioning Ampol as either the largest or second-largest fuel retailer. The ACCC’s preliminary view is that the acquisition could substantially lessen competition in these markets, potentially leading to higher fuel prices due to reduced competitive constraints.

Notably, the ACCC highlights that EG Australia often prices below Ampol and acts as a price leader during fuel price cycles, which are common in these metropolitan areas. The removal of EG Australia as an independent competitor could alter pricing dynamics unfavourably for consumers.

Local Market Overlaps and Competitive Effects

At a local level, the ACCC identified 54 EG Australia sites overlapping with Ampol sites that raise competition concerns. Some overlaps are particularly close, with five EG Australia sites within 200 metres of an Ampol site and 24 within 1 kilometre. The ACCC is concerned that Ampol’s increased concentration in these areas; sometimes reaching a 75% share of local sites; could diminish competitive pressure.

The ACCC also notes that other competitors may not provide a strong constraint post-acquisition due to factors such as location, product offerings, or pricing strategies, further intensifying the potential impact on competition.

Remedy Offer and Next Steps

In response to the ACCC’s concerns, Ampol has offered a remedy involving the divestment of 19 fuel retail sites to an ACCC-approved purchaser. This offer is under consideration, and Ampol may propose further remedies as discussions continue.

The ACCC has invited Ampol and EG Australia to respond to the preliminary issues by 8 April 2026, with a final determination on the acquisition due by 5 June 2026. Ampol remains confident in its position and is actively engaging with the regulator to address the competition concerns.

Broader Industry Context

The proposed acquisition would make Ampol the largest fuel retailer in Australia by site count, expanding its footprint to over 1,100 retail locations. This consolidation occurs amid a fuel retail market characterized by a mix of vertically integrated majors, independent retailers, and smaller operators, with consumer behaviour increasingly influenced by fuel price apps and price cycles.

The ACCC’s detailed geographic and market analysis reflects the complex interplay of local and metropolitan competitive dynamics, with consumer willingness to travel for cheaper fuel and the presence of price cycles shaping market behaviour.