The commerce commission has approved Ampol’s bid to takeover Z Energy, subject to conditions.
The Australian fuel company will acquire 100 per cent of Z’s assets if it can sell Gull to investment firm Allegro Funds.
Ampol’s bid to takeover Z is $2 billion. The company has offered to sell Gull to Allegro for $572 million.
Cash raised in Gull’s sale will fund the Z takeover.
All major New Zealand fuel retailers will have international owners if successful.
The stations will likely still be called Z rather than being rebranded Ampol.
The commission still has to approve a request by Ampol to sell Gull to Allegro. No request has been made, meaning, for now, the commission “is not approving Allegro as the purchaser of Gull.”
The commission will approve the sale if they believe “that it is unlikely to have the effect of substantially lessening competition in a market.”
Another condition of the sale is Z shareholders must still approve of it at a meeting next week.
However, Z has recently urged shareholders to vote in favour of the move.
“Z will be able to tap into Ampol’s significant supply chain, including trading and shipping operations, that will deliver scale benefits,” chief executive Mike Bennetts said.