The ACCC has approved Ampol’s acquisition of EG Australia, mandating the sale of 41 overlapping fuel retail sites to Metro Petroleum to maintain competition across 39 local markets.
- Ampol to divest 41 overlapping fuel sites
- Metro Petroleum approved as purchaser
- ACCC concerned about competition in 39 local markets
- Phase 2 review under new mandatory merger regime
- Divestment aims to preserve consumer choice and competition
ACCC mandates significant divestments to preserve local fuel competition
The Australian Competition and Consumer Commission (ACCC) has given conditional approval to Ampol Retail Holding Pty Ltd’s acquisition of EG Australia, requiring Ampol to divest 41 retail fuel sites to an ACCC-approved buyer. The decision reflects the regulator’s concern that without these divestments, the merger would substantially lessen competition in 39 local markets where Ampol and EG Australia’s retail outlets overlap.
Ampol, which operates 622 sites under the Ampol and U-GO brands, and EG Australia, with 512 sites, both supply petrol, diesel, and convenience products nationwide. The ACCC’s review focused on local market overlaps and broader metropolitan fuel supply competition, concluding the initial proposal to divest only 19 sites was insufficient to address competition risks.
Metro Petroleum poised to expand footprint with divested sites
The ACCC has approved the Dib Group, trading as Metro Petroleum, as the purchaser of the divested sites. Metro Petroleum already operates over 300 fuel retail outlets across Australia. The ACCC believes this acquisition will create or expand a strong, independent competitor in the affected local markets, helping to maintain competitive pressure on fuel prices and consumer choice.
To facilitate a smooth transition, the ACCC granted Metro Petroleum a notification waiver, allowing the divestiture to proceed without further regulatory delays. ACCC Commissioner Dr Philip Williams highlighted how the in-depth Phase 2 investigation under the new mandatory merger notification regime enabled efficient management of the remedy and notification processes.
New merger control regime shapes ACCC’s approach
This is among the first major decisions under Australia’s new mandatory merger notification regime, effective from January 2026. The regime requires businesses to notify the ACCC of acquisitions meeting certain thresholds and await approval or a waiver before proceeding. The ACCC’s Phase 2 review, which can last up to 90 business days, involves a detailed assessment of competition impacts and possible conditions.
In this case, the ACCC found that disregarding any conditions, the acquisition would substantially lessen competition. Approval was only granted after Ampol agreed to increase its divestment offer from 19 to 41 sites, addressing the ACCC’s concerns about local market overlaps. The regulator will continue to monitor the fuel industry closely, mindful of community concerns over fuel prices and cost of living.
Ampol and EG Australia’s integration and branding
Ampol is a vertically integrated fuel company with upstream production, wholesale supply, and retail operations. EG Australia, owned by UK-based EG Group, entered the Australian market in 2019 after acquiring Woolworths’ fuel and convenience sites. Ampol currently supplies fuel exclusively to EG Australia, which operates retail sites under the Ampol brand and convenience stores under the EG brand.
The ACCC’s decision preserves the competitive landscape by ensuring Metro Petroleum’s entry or expansion in overlapping markets, which could influence fuel pricing and consumer options. However, the long-term impact will depend on Metro Petroleum’s operational success and ongoing regulatory oversight.
Bottom Line?
The ACCC’s conditional approval underscores the regulator’s vigilance in preserving competition amid major fuel retail consolidation, with Metro Petroleum’s role now critical to maintaining market dynamics.
Questions in the middle?
- How effectively will Metro Petroleum compete in the newly acquired local markets?
- Will the divestments translate into tangible fuel price benefits for consumers?
- How might Ampol’s broader integration of EG Australia sites evolve post-merger?