The Australian Competition and Consumer Commission will not oppose the autogas marketing joint venture between Elgas and Kleenheat, ACCC Chairman, Professor Allan Fels, said today.
On 11 April this year Elgas and Kleenheat announced the proposed merger of their autogas wholesaling and retailing businesses in all States except Western Australia. Both Elgas and Kleenheat are specialist marketers of liquefied petroleum gas (LPG). Autogas is LPG that has been specifically processed to be used as a fuel for motor vehicles.
"The ACCC has conducted extensive market inquiries, speaking to competitors, customers of the joint venture parties as well as motoring organisations.
"The proposed joint venture will not cross the ACCC's concentration threshold for the exercise of unilateral market power in any market in which it will operate. In addition, there are other distributors of autogas that should continue to provide some measure of competition against the joint venture.
"On this basis, the ACCC concluded that the proposed acquisition was unlikely to result in a substantial lessening of competition".