WELLINGTON, April 29 (Reuters) - New Zealand's Commerce Commission on Friday cleared petrol retailer Z Energy Ltd to buy 100 percent of the shares in Chevron New Zealand, subject to some divestments.
The regulator stipulated that Z Energy must divest 19 retail sites and one truck stop in locations "where the Commission considers competition would be substantially reduced as a result of the merger."
In mid-2015 Z Energy announced plans to acquire Chevron Corp's
downstream operations in the country for NZ$785 million ($546.20 million). It said it is confident it can meet the divestment obligations. Z Energy currently owns and operates a network of just over 200 service stations. Chevron operates around 150 Caltex stations and 70 truck fueling stations in New Zealand as well as lubricant interests.
According to Z Energy, the technical systems cutover is slated to take place May 31 with the June 1 settlement day being the first day the two companies will operate under common ownership.
Once the acquisition is settled, Z Energy said it is confident it remains on track to deliver the NZ$25 million to NZ$30 million of synergies previously identified as a result of the deal.
The total purchase price is NZ$785 million plus a working capital adjustment and will be funded from cash (NZ$115 million) and debt (NZ$670 million), Z Energy said. ($1 = 1.4372 New Zealand dollars)
