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Shell NZ Applies For Clearance To Acquire Certain Aviation Fuel Assets Of Mobil Oil NZ

Fuseworks Media
Fuseworks Media

25 JUNE 2008 - The Commerce Commission has received an application from Shell New Zealand Limited seeking clearance to acquire Mobil Oil New Zealand Limited's Aerostop network assets.

The application concerns specialist aviation fuels. The main suppliers of aviation fuel are BP Oil New Zealand Limited, Shell and Mobil.

Shell is not seeking to acquire the entire Mobil aviation fuel business. The acquisition relates only to the supply of aviation fuel to light aircraft and helicopters engaged in a range of general aviation activities including agriculture, flying schools, tourism and recreational flying. These customers are supplied through unattended refuelling facilities (fuel pumps which are activated with customer swipe/fuel cards).

The supply of aviation fuel to domestic and international scheduled passenger airlines is excluded from the acquisition, as is supply to the military and other aircraft that use manned into-plane refuelling services. Also excluded from the acquisition is all infrastructure pertaining to the production, storage and transportation of aviation fuel.

Mobil's Aerostop network comprises 48 unattended refuelling facilities at 34 local and regional airfields. Shell's network comprises 32 facilities at 23 locations. The acquisition only involves aggregation at seven locations in the North Island.

In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

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