WASHINGTON, D.C. — The Federal Trade Commission (FTC) has taken action to address antitrust concerns related to Alimentation Couche-Tard Inc.’s (ACT) $1.57 billion acquisition of 270 retail fuel outlets from Giant Eagle, Inc. The FTC announced Thursday that ACT must divest 35 gas stations as part of a consent order designed to preserve competition in the retail fuel market.
ACT, which operates over 7,100 stores across the United States under the Circle K brand, faced allegations from the FTC that its acquisition of Giant Eagle’s fuel outlets would harm competition in 35 local markets across Indiana, Ohio, and Pennsylvania. According to the FTC’s complaint, these markets are characterized by direct price monitoring between ACT and Giant Eagle stations, and the companies often serve as the primary alternatives for consumers in these areas.
“This anticompetitive acquisition threatened to make Americans pay more at the pump by raising fuel prices,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “The FTC’s action today preserves competition between gas stations that is critical for keeping fuel prices in check. The FTC will keep a watchful eye on retail fuel markets to make sure American consumers can spend less on gas and keep more money in their pockets.”
Under the terms of the proposed consent order, ACT must sell the 35 gas stations to Majors Management, LLC, an experienced operator of retail fuel outlets. The divestiture will introduce Majors as a new competitor in these local markets, helping to address the FTC’s concerns about reduced competition.
Key provisions of the FTC’s order include:
- Completion of the divestitures within 20 days of the acquisition’s conclusion.
- Requirements for ACT to maintain the competitiveness of the affected stations until the divestiture process is finalized.
- A prohibition on ACT reacquiring any of the divested stations for 10 years.
- A mandate for ACT to provide advance notice to the FTC before acquiring competitively significant stations in the targeted local markets for the same 10-year period.
The move aims to ensure fuel prices remain fair for consumers. By expanding the presence of Majors Management, the ruling seeks to safeguard consumer choice and maintain market balance in fuel retailing across Indiana, Ohio, and Pennsylvania.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.