M&A

10 November, 2009

Australia regulator extends review of Caltex deal

PERTH, Nov 11 (Reuters) - Australia's competition regulator has extended its review of Caltex Australia Ltd's (CTX.AX) A$300 million ($280 million) purchase of ExxonMobil Corp's (XOM.N) gas service stations to Dec. 2, Caltex said on Wednesday.

The Australian Competition and Consumer Commission was due to give a decision on Wednesday on the deal, which involves 302 of Exxon's gas stations along Australia's populous east coast.

Under the deal, Caltex would boost its share of Australia's fuel retail market to 22 percent from 16 percent and help ExxonMobil exit its smaller-scale Australian marketing business.

Most analysts doubt the commission will approve the deal in its current form. The regulator said in September the transaction could substantially lessen competition in wholesale fuel markets in some regions and lead to higher petrol prices.

The commission has left the door open for Caltex to scale down the takeover to address anti-competition concerns. ($1=1.077 Australian Dollar) (Reporting by Fayen Wong; Editing by Mark Bendeich)

Source: http://www.reuters.com