Shell applies for clearance to acquire FCE: offers to divest some assets including Challenge petrol stations
Published21 Aug 2000
The Commerce Commission has received an application from Shell Exploration Company BV for clearance of its proposal to acquire Fletcher Challenge Limited's energy division, Fletcher Challenge Energy (FCE).
Commission Chair John Belgrave said that Shell's application includes an undertaking that, if the proposal went ahead, Shell would divest a range of assets currently owned by FCE, including the Challenge petrol stations. The divestments offered by Shell as part of its proposal are on the following page of this media release.
Mr Belgrave said that the Commission will investigate what impact the proposal, if it were to go ahead, would have on competition in a range of New Zealand energy related markets.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets in New Zealand.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance would not be acquired or strengthened. The Act gives the Commission 10 working days in which to make its decision, but allows for extensions of time if necessary. Working day 10 will be September 1.
A clearance, if granted, protects an acquisition from court action under the Act.
The assets and shares Shell has offered to divest as part of its proposal are:
FCE's equity interest and any other involvement in the Kupe natural gas field
All of FCE's equity interest and any other involvement in Kapuni Gas Contracts Limited
All of FCE's equity interest and any other involvement in Fletcher Challenge Gas Investments Limited
All of the share in, or all of the assets employed in connection with the retail business of, Challenge Petroleum Limited, and
All of FCE's equity interest (being 14.2 percent) in the New Zealand Refining Company Limited.
