Commission To Issue Statement Of Issues On Mobil Jet Fuel Acquisitions

The Commerce Commission has decided to issue a Statement of Issues relating to applications for clearance from Mobil Oil New Zealand Limited to acquire up to 100% of Z Energy Limited’s ownership interest in two assets used to supply jet fuel at Auckland International Airport: the Wiri to Auckland Pipeline (WAP) and the Auckland Airport Joint User Hydrant Installation (JUHI).

The Statement of Issues will be published on the Commission’s case register in due course, and will outline the Commission’s potential competition issues with the proposed acquisitions following its initial investigation.

A Statement of Issues is not a final decision and does not mean that the Commission intends to decline or clear Mobil’s applications for clearance.

The Commission is currently scheduled to make a decision on the application by 20 June 2022, although it is in discussions with Mobil to extend time. If a new decision date is agreed, this will be published on the Commission’s case register.

Background
The WAP delivers jet fuel to Auckland International Airport from the storage facility at Wiri, which is then stored at the Airport at the JUHI. The assets are currently jointly owned and operated by Mobil, Z and BP Oil New Zealand Limited under the terms of two separate joint venture agreements. If Mobil acquires all of Z’s ownership interest, it may become the majority owner of both assets.

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.

© Scoop Media