WELLINGTON: The deal, which is one of the biggest takeovers of recent years, will create a giant with almost half the fuel market if it goes ahead.
The monopoly watchdog will only approve it if is satisfied the merger is unlikely to “substantially lessen” competition.
The commission said both companies were involved in fuel and bitumen storage, pipelines and logistics, wholesaling fuels, and retailing petrol and diesel.
Dave Bodger, the boss of rival fuel retailer Gull, has warned the merger could be “potentially dangerous” for competition and pump prices, while the AA has also expressed concerns.
When the deal was announced last month, Z Energy chief executive Mike Bennetts said there would be no lessening of competition between service stations.
He said Z was as confident as it could be in its application and claimed there were strong grounds for getting it over the line.
If the deal goes ahead, the three big players Z, BP and Mobil will dominate the market with a combined share of about 90 per cent.
Z, which is holding its annual general meeting in Auckland on Wednesday afternoon, is hoping to have everything signed off and settled by the end of November.
