23-01-2018
AdC opens in-depth investigation into the RUBIS / Ativos Repsol proceeding
Press Release 02/2018
AdC opens in-depth investigation into the RUBIS / Ativos Repsol proceeding
The Portuguese Competition Authority (Autoridade da Concorrência – AdC) decided to proceed to an in-depth investigation into the merger involving the acquisition of the assets of the liquefied petroleum gas (LPG) distribution business in the Azores and Madeira, owned by REPSOL Gás Portugal.
The business at issue involves the distribution of LPG through pipeline, in bulk and, mostly, in bottles in most of the Azores and Madeira islands.
The supply and distribution of LPG in the Azores and Madeira, including bottled gas, is currently made by three operators (GALP, REPSOL and RUBIS), a number which the proposed merger will reduce to two, in case it is approved by the authority.
The decision to proceed to an in-depth investigation is grounded in the fact that, based on the evidence gathered so far, there are still concerns that the acquisition of REPSOL’s gas business in the Azores and Madeira by RUBIS will significantly restrain competition in those markets and will have a negative impact on the supply conditions of LPG to final consumers.
The AdC will carry out the necessary investigations and, particularly, will seek to assess whether new operators are likely to enter the mentioned markets and compete with GALP and RUBIS.
According to the Competition Act, following the in-depth investigation, the AdC may:
- Adopt a non-opposition decision, if it considers that the operation, as notified, or as a result of changes made by RUBIS, is not likely to create significant restraints to competition in the Azores and Madeira markets; or
- Adopt a prohibition decision, if it considers that the operation is likely to create significant restraints to effective competition in the Azores and Madeira markets and, consequently, harm the final LPG consumers, including the bottled LPG.
23 January 2018
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