On July 21, 2009, Canada's Competition Bureau announced that
it had reached a consent agreement with Suncor and Petro-Canada in
connection with their proposed merger, previously announced on
March 23, 2009. The consent agreement addresses the Bureau's
concerns that the merger may have led to a substantial lessening of
competition and increased retail gasoline prices. Specifically, the
consent agreement requires that the parties:
- sell 104 retail gas stations in southern Ontario;
- sell approximately 1.1 billion litres of terminal storage and
distribution capacity, annually, to be used for wholesale
distribution during a 10-year period at their terminals located in
the Greater Toronto Area; and
- supply 98 million litres of gasoline each year for a 10 year period, to independent gasoline marketers.
Both the Bureau and the parties to the merger have expressed satisfaction with the agreement. Melanie Aitken, Interim Commissioner of Competition commented that "requiring the companies to sell retail outlets will lead to increased competition by independent retailers who can expand their market presence [and] .the parties' commitment to sell terminal space in the Greater Toronto Area is important to promoting a competitive dynamic in that market." Rick George, the current president and CEO of Suncor, who will assume the same role in the merged company, said that "we are satisfied that the resulting terms will preserve the expected benefits of the merger and maintain a competitive refined products market in Ontario."
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