NPD–Gull merger planned — could bigger buying power mean cheaper fuel?

Two of New Zealand’s best-known independent fuel retailers, NPD and Gull, are planning a nationwide merger that would create the country’s largest independent, majority Kiwi-owned fuel company. The combined operation would span around 240 sites from Invercargill to Kaitaia and purchase roughly one billion litres of fuel a year.

The proposed merger would see NPD owner and chief executive Barry Sheridan become group CEO of the combined business, with the South Island-based Sheridan family holding a 50 percent stake. Australasian private equity firm Allegro Funds, which currently owns Gull, would retain the remaining 50 percent shareholding.

Both brands would continue to operate under their existing names, but the companies say the scale of the combined operation could allow them to operate more efficiently — raising the question of whether motorists could ultimately see lower prices at the pump.

“Both companies are focused on making it easy for customers to pay less for fuel,” Sheridan says. “NPD started doing so more than 55 years ago and Gull started shaking up the market 25 years ago. Together, we’ll be able to do even more.”

One of the key attractions of the merger is the complementary geographic footprint of the two businesses. Gull’s network is concentrated in the North Island, while NPD has traditionally focused on the South Island, meaning the combined group would achieve national coverage without significant overlap.

Gull chief executive Dan Gilbert says that alignment was a major driver of the deal. “We’ve both grown strong businesses, but in different parts of the country. Joining forces means we can reach more customers, more quickly, and build on what each brand already does well.”

Efficiency and scale

The companies say operational efficiencies are central to the proposal. These include using Gull’s Mt Maunganui fuel terminal alongside NPD’s trucking fleet to increase the amount of directly sourced fuel delivered to sites. They also point to a lean combined workforce of fewer than 130 staff and the removal of duplicated systems as factors that could help keep costs down.

Whether those efficiencies translate into consistently cheaper fuel for consumers will be closely watched, particularly in a market dominated by much larger multinational players.

The merger remains subject to regulatory approval, including clearance from the Commerce Commission. The companies say they have already engaged with the regulator and plan to lodge a clearance application in January.

If approved, the deal would mark a significant shift in New Zealand’s fuel retail landscape — and put fresh pressure on rivals to sharpen pricing in an already competitive market.