Opponents of oil deal get ammunition
Publish date: 06 October 2005
Issue Number: 1436
Diary: Legalbrief Today
Category: Competition
In what Business Day describes as a boost for opponents of the Sasol-Engen deal to create empowered Uhambo Oil, Competition Commission economist Geoff Parr said yesterday there were problems with the conditions it had attached when it recommended the Competition Tribunal approve the deal.
The Commission recommended approval of the deal to create Uhambo Oil, a R33bn fuel company that will control about 48% of SAs fuel production capacity and 34% of the fuel retail market, subject to the provision of regular reports to the competition authorities. The Commission also ordered Sasol to supply other oil companies on request with volumes in the inland market that could be reasonably transported at a set price and subject to a new pipeline being made available. Totals legal representation pointed out that the Commission had, in its report, acknowledged the merger would concentrate Sasol and Engens shares in the retail market, but had said that this does not give rise to significant competition concerns. Parr conceded the report was perhaps somewhat sparse on this issue. Parr said some of the definitions in the report could perhaps be tweaked. Full Business Day report
