Competition authority seeks public views on Eneos Apac’s proposed acquisition of Chevron Singapore
Eneos says there are many existing competitors in the industry and relatively low barriers to entry
The Competition and Consumer Commission of Singapore (CCS) has opened a public consultation period on the proposed acquisition of Chevron Singapore by Eneos Apac, a subsidiary of Eneos. The CCS accepted the companies' application on October 2 to determine if the transaction would breach section 54 of the Competition Act 2004.
Chevron Singapore is a downstream petroleum company operating in Singapore and Vietnam. It engages in retail distribution of fuels and lubricants, holds an equity interest in Singapore Refining Company, and manages fuel storage, terminal operations, and lubricant blending and wholesale. Eneos Apac, on the other hand, is a Japan-based energy, resources, and materials group involved in crude oil, naphtha, and refined petroleum products trading, lubricant blending and wholesale, marine fuel supply, and solar energy solutions. The company's primary operations in Singapore are under the Eneos brand.
If the acquisition proceeds, Chevron Singapore would continue to operate under both Chevron and Caltex brands, with Eneos stepping into Chevron's current operations in the city-state. The acquisition would not significantly impact competition, given the existing number of competitors, low barriers to entry and expansion, and customers' ability to multi-source and switch lubricant suppliers at minimal cost.
The CCS requests public feedback on the transaction's potential effects on competition, accepting submissions until October 16 via its online form or email.
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