Caltex Australia scraps A$300 million deal to buy Exxon Mobil’s 302 gas stations

Caltex Australia today decided not to go ahead with its plan to buy 302 gas stations from Exxon Mobil Corporation after the country's competition regulator opposed the deal on the grounds that the acquisition could see a hike in fuel prices.

Caltex, Australia's biggest oil refiner, had announced in May last year that it would be acquiring 302 Mobil and Mobil Quix gas stations in Sydney, Melbourne, Brisbane and Adelaide for A$300 million ($288 million), subject to regulator's approval. (See: Caltex to acquire Mobil service stations for $300 million)

The Australian Competition and Consumer Commission (ACCC) had blocked the deal on 10 February 2010 saying that the deal would diminish competition and allow the nation's biggest oil refiner to raise fuel prices.

Caltex Australia said today that it does not agree with the ACCC's findings, but has since engaged in discussions with Mobil for possible solutions to address the ACCC's concerns.

Caltex Australia said that both companies have now agreed they will not proceed with the current proposal, however, Caltex will continue to explore opportunities to grow its business.

Caltex is primarily a wholesaler of fuel but a relatively small player in the retail fuel market when compared with Coles Express, Woolworths and BP.