Oil distribution merger issues statement
11 May 2012
The Competition Commission (CC) has published an issues statement as part of its investigation into DCC Energy UK Limited’s (which operates GB Oils) completed acquisition of a number of businesses from Rontec LLP Limited which were previously owned by Total Downstream UK plc—including the Butler Fuels oil distribution business and the contractual right to supply transport fuels to a number of dealer-owned, dealer-operated retail service stations currently under the Total brand.
The Office of Fair Trading (OFT) referred the case last month, and the CC will decide whether the acquisition may be expected to result in a substantial lessening of competition in any market or markets for goods or services in the UK.
GB Oils and Butler Fuels both supply oil products, particularly heating oil and transport fuel, to a range of domestic, commercial and agricultural customers in the UK. Each has a sizeable network of oil depots in England and Wales, numbering over 100 depots in the case of GB Oils and 40 for Butler Fuels.
The CC is expected to publish its final report by 18 September 2012.
The issues statement identifies clearly for all interested parties the key questions which the inquiry is examining. The issues statement does not imply that the Inquiry Group has yet identified any competition concerns.
The full issues statement is available on the DCC/Rontec inquiry home page along with all other information relating to the investigation.
Any interested party is invited to respond to the issues statement, in writing, by no later than 1 June 2012. To submit evidence, please email: dcc-rontec@cc.gsi.gov.uk or write to:
Inquiry Manager
DCC/Rontec inquiry
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD
Notes for editors
1. The OFT said in its GB Oils/Pace decision that: GB Oils operates under a number of different brands, principally: Bayford Oil, Brogan Fuels, Carlton Fuels, CPL, Emo Oil, F Peart & Co, Gulf, Scottish Fuels, Southern Counties, Team Flitwick, Town & County Fuels (as well as other regional and local brands) and now Pace Fuelcare.
2. The members of the DCC/Rontec Inquiry Group are: Simon Polito (Chairman of the Group and CC Deputy Chairman), Ivar Grey, John Cubbin and Peter Jones.
3. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.
4. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.
5. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.
6. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.
7. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.
