Australia opposes Caltex deal with ExxonMobil

Australia’s competition regulator rejected Caltex Australia Ltd.’s proposed A$300 million (US$277.5 million) takeover of ExxonMobil Corp.’s Australian filling stations, highlighting an intense level of public and regulatory sensitivity to any deals in the oil retail sector. In line with a preliminary evaluation it gave in September, the Australian Competition and Consumer Commission (ACCC) said it will oppose the deal based on its likely effect on local market competition for the supply of gasoline, diesel fuel and automotive liquid petroleum gas (LPG). The regulator said it also has broader concerns about the effect of the acquisition on the “stability and effectiveness of coordination between major fuel retailers in determining prices.” (December 3, 2009)