30 June 2011: Fuel and LPG Distribution

The Autorité de la concurrence clears under conditions the acquisition by Rubis Group of sole control of Chevron (Texaco)’s activities in the French West Indies and Guyana
 

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The Autorité de la concurrence has examined the Rubis Group’s takeover of Société Antillaise des Pétroles Chevron.

The French group Rubis is a major player in the energy sector and distributes, among others, fuels under the Vito brand, and LPG under the Vitogaz, Gaz’L and ViTO brands. It also operates storage depots.

La Société Antillaise des Pétroles Chevron is a subsidiary of the American oil company Chevron Corporation, and distributes oil and LPG products in the French West Indies and Guyana.

In Martinique, the Autorité considered that the operation raised no competition problems because of the Total Group’s strong presence in the département. However, there was a risk that the acquisition would significantly strengthen Rubis’ presence on certain local markets for the sale of fuel in networks in Guadeloupe and Guyana and on the market for the sale of packed LPG in Guyana.

The new entity would hold very large market shares, and competitors would have insufficient competitive pressure. The Autorité considered that this would worsen the effects of the weak competition seen on all the fuel markets in the French West Indies-Guyana¹  and that, despite the current price regulation, it would affect the quality of services.

The Autorité de la concurrence therefore cleared the operation subject to certain commitments to remedy the competition concerns identified.

The new entity firstly undertakes to sell off service stations in Guadeloupe and Guyana, and secondly Chevron’s LPG activities in Guyana

In Guadeloupe, Rubis has committed to divest 2 service stations in the Basse-Terre (Texaco service station in rue Lardenoy, Orléans district) and Capesterre-Belle Eau (Texaco service station in Marquisat district) areas.

In Guyana, Rubis has undertaken to sell 4 service stations in Cayenne and all Chevron’s packed LPG activities. The service stations concerned are the ‘Texaco Baduel’ (679 route de Baduel), the ‘Texaco Madeleine’ (route de la Madeleine), the ‘Vito Marengo’ (Collery), and the ‘Vito Zéphir’² (route de Zephir).

These assets must be transferred to one or more players who can drive competition in these markets to the benefit of consumers in the French overseas départements (DOM).