Irish fuel retailer's expansion plans delayed amid concerns over 'reduced competition'
Circle K has confirmed its intention to acquire nine forecourt retailers in multimillion euro deal
Plans by one of the country's largest forecourt retailers to acquire nine additional premises have hit a road block after the Competition and Consumer Protection Commission (CCPC) confirmed it is to carry out a more detailed review of the proposed deal.
Last year, Circle K, which has hundreds of service stations across the country, announced it had reached an agreement to buy nine Texaco and Centra-branded service stations and stores from the privately-owned Pelco Holdings Limited.
According to the CCPC, there are approximately 400 Circle K-branded service stations in the State, of which Circle K owns 168. The remainder are independently owned and operated under the Circle K brand by third parties.
The nine forecourts which the company is proposing to buy are located in County Dublin (7), Batterstown in Meath and Mullingar in Westmeath. Around 140 people are employed across the nine locations.
The CCPC says having examined details of the proposed acquisition, there are concerns about the impact it could have on competition in the market.
"The assessment sets out the CCPC’s preliminary concerns on how the proposed acquisition could reduce competition in the retail motor fuel sector," states the report which has published by the CCPC.
The CCPC says the preliminary assessment is not a final determination and that both Circle K and Pelco now have the right to respond in writing, make oral submissions and get access to its file.
The consumer watchdog, which has the power to block the acquisition, says it expects its full investigation will conclude by July.