Oil companies oppose Sasol merger bid
Publish date: 04 October 2005
Issue Number: 1434
Diary: Legalbrief Today
Category: Competition
Multinational oil companies operating in SA were almost unanimous in requesting the Competition Tribunal yesterday to block the mooted merger between Engen and Sasols liquid fuels business, warning that it could harm the industry and consumers, says a Business Day report.
The merger, to form Uhambo Oil with R33bn annual revenue, is one of the largest to be considered by the Tribunal and would likely change SAs fuel industry landscape. The hearings will continue for the next three weeks. All major oil companies operating in SA oppose the deal BP, Shell, Total and Chevron, as well as small black trading company Masana saying it could jeopardise the availability and rise the cost of Sasols supply of fuel to them. This could have a knock-on effect to consumers. The oil companies opposed to the merger are dependent on Sasol for the supply of fuel in inland regions, where they do not have refineries. Full report in Business Day
