Circle K’s Pelco deal cleared after pledges
The competition watchdog has cleared a proposed acquisition in the service-station sector, but the deal is subject to legally binding commitments.
The decision by the Competition and Consumer Protection Commission (CCPC) clears the way for Circle K to buy eight Pelco-operated, Texaco-branded service stations in Dublin and Meath.
Pelco operates 13 Texaco-branded service stations, nine of which were originally included in the transaction. Circle K is the largest service-station operator in the State, with over 400 outlets.
An in-depth investigation by the CCPC found that, while competition would not be substantially lessened in most areas as a result of the deal, there were potential issues in certain parts of north Dublin, as Circle K holds a large share in the retail sale of motor fuels in Artane and Coolock.
Beaumont disposal
To address the watchdog’s concerns, Circle K has agreed not to go ahead with the acquisition of the Pelco service station in Coolock, Dublin 5, as part of the deal and to dispose of its Circle K service station at 9 Beaumont Road, Dublin 9, to another operator under a long-term lease arrangement.
As a result, the CCPC has concluded that the transaction will not result in a substantial lessening of competition.
An independent monitoring trustee will be appointed to ensure that Circle K complies with the agreed commitments.