Many people rely on oil to heat their houses, so will be interested in this story.
The Office of Fair Trading (OFT) have announced that they are concerned about the effects on the supply of heating oil and transport fuel on the Isle of Wight, if a proposed takeover of Pace Fuelcare Limited by GB Oils goes ahead.
The OFT are concerned that, “the newly-merged firm would account for almost the entire supply of heating oils and transport fuels on the Isle of Wight.
Solutions put forward by companies involved
The companies have offered possible solutions. GB Oils has offered to divest (sell off) its oil distribution business or that of Pace on the Isle of Wight including the fuel terminal in Cowes, owned by Pace.
The OFT’s concern is so great that they’re insisting that they approve an up-front buyer, as they feel there is a, “reasonably small number of potential purchasers that would be capable of viably distributing heating oils and transport fuels in the Isle of Wight in such a way as to restore pre-merger competitive levels.”
Large number of complaints
Amelia Fletcher, OFT Chief Economist and Decision Maker in this case said, “The OFT received a large number of complaints regarding the impact of the merger in the Isle of Wight, where the newly-merged firm would have a near monopoly of the distribution of heating oils and transport fuels for both domestic and business customers. The OFT is therefore asking for a remedy that will ensure pre-merger levels of competition are retained for the Isle of Wight.
“If a divestment package is not agreed, then a referral to the Competition Commission will be necessary.”
