GB Oils/DCC avoid referral to Competition Commission over Brogan acquisition
Thursday, July 8th, 2010OilFiredUp reported last week that the OFT has accepted the undertakings offered by GB Oils Limited to address the competition concerns arising from its completed acquisition of Brogan Holdings Limited. As a result, the merger will not be referred to the Competition Commission.
Under the terms of the undertakings, Brogans’ oil distribution business on the Western Isles in Scotland will be sold to Highland Fuels to resolve competition concerns raised by the merger.
The OFT carefully assessed and consulted publicly on the proposed undertakings, as well as on the suitability of Highland Fuels as a purchaser of Brogans’ oil distribution business on the Western Isles. This included ensuring that Highland Fuels had been able to agree a new lease for Brogans’ Stornoway site.
Sheldon Mills, Director of Mergers said, ‘This merger would have led to a virtual monopoly for the supply of heating oils and transport fuels in the Western Isles.
“However, the sale package agreed today will restore pre-merger levels of competition for the benefit of the local community. The OFT believes that Highland Fuels, with its extensive experience of providing this service elsewhere in Scotland, is a suitable purchaser for the divestment business.’
To download the full OFT announcement please click here
