Finnish St1 is disappointed.
To buy Shell’s 420 Norwegian gas stations, St1 must sell all their present stations in Norway.
That is the Norwegian Competition Authority’s conditions for approval.
St1 Nordic operates in Finland, Sweden and Norway, where it has been in the service station business since 2009. Shell and St1 agreed about the Norwegian acquisition last December, but the agreement was subject to the Competition Authority approval.
The approval of the Shell acquisition now means that Konkurransetilsynet believes competition is not weakened if St1 divest their own stations.
”We have concluded that the competition locally and nationally would be exacerbated if St1 both had acquired Shell’s stations, and retained their own. In dialogue with St1, we have arrived at a different solution,” says adviser Eivind Lille Sveen at Konkurransetilsynet to Finansavisen.
It is now up to St1 to find a suitable buyer for the 39 stations and present the proposal to the Competition Authority, which will consider how the sale of the 39 stations will affect the competitive situation.
St1s CEO Kim Wiio are pleased that Shell stations can be adopted, but is disappointed that St1s own stations must be sold, writes NTB.
St1 writes in a press release that the acquisition is likely to be closed by the last quarter of this year. As per the seller’s request, the commercial terms are not disclosed.
The acquisition will increase St1 Nordic’s turnover by approximately EUR 1.5 billion.