NPD-Gull merger cleared to proceed

The Commerce Commission has granted clearance for Astra Energy Group Limited to acquire Gull and NPD. It paves the way for the creation of a major new fuel group in New Zealand.

The decision allows Astra to acquire all shares in GNZ Holdco Limited, which owns Gull, and NPD Group Investments Limited, including its subsidiaries.

In reaching its decision, the Commission considered the potential impact of the proposed merger on competition in the retail and wholesale fuel markets.

Commerce Commission chair John Small says the regulator undertook a detailed investigation and found the deal is unlikely to substantially lessen competition.

“Our investigation included looking at the markets within which NPD and Gull currently operate and assessing whether there would still be adequate competitive alternatives post-merger to constrain the new company’s ability to raise prices and reduce the quality of its service,” Small says.

“Following this work, we are satisfied that the proposed merger is not likely to substantially lessen competition in any market in New Zealand in which the parties compete, or are likely to compete in future.”

The Commission also assessed whether the merger could make coordinated behaviour between fuel suppliers more likely, including restricting output or increasing prices, and concluded it would not change market conditions in a way that made coordination more likely or sustainable.

Small says the merged entity will continue to face competition in both retail and wholesale fuel markets.

The Commission’s investigation indicated the business would be constrained by the presence of other competitors, including major fuel companies and independent suppliers.

Following the decision, the companies say the merger will strengthen competition and support lower fuel prices.

NPD chief executive Barry Sheridan says the combined business will build on both brands’ focus on affordability.

“At a time when every cent matters, Gull and NPD joining together will make our ability to support lower fuel prices in NZ even stronger, as we continue our legacy of being the brands New Zealander’s trust for fair fuel prices,” he says.

“Combining Gull’s Mt Maunganui fuel import terminal and the NPD’s owned and managed fleet of fuel trucks creates a strong fuel supply solution for all commercial and retail customers. Add to this smart distribution efficiencies, economies of scale, and a committed team focused on customer service, and we’ll have a formidable offer to best meet any fuel demands in New Zealand.”

Gull chief executive Dan Gilbert says both companies share a similar approach to the market.

“Being there for motorists with lower prices, every day, is something both companies have in common,” he says.

“It’s going to be exciting to see the ‘Gull effect’ and ‘NPD effect’ on fuel competition deliver even more through the combined business, a company with national scale. Beyond pricing, it brings resilience to fuel supply that benefits motorists everywhere,” Gilbert says.

“With NPD shaking up the market for more than 55 years and Gull doing the same for the last 25, our teams have a lot in common when it comes to delivering savings, speed and safety.”

Planning is now underway to establish a combined business operating around 240 sites nationwide, while retaining both the NPD and Gull brands.