WASHINGTON, D.C. — The Federal Trade Commission moved to block potential price hikes in the quick-lube oil change market, ordering Valvoline Inc. and private equity firm Greenbriar Equity Fund V to divest 45 oil change shops as a condition of their $625 million acquisition deal.
The proposed consent agreement, announced Thursday, requires the divestitures to prevent what regulators say would be a dangerous reduction in competition across 25 local markets in eight states. Main Street Auto, LLC will buy the required locations from Greenbriar.
Valvoline is seeking to acquire roughly 200 quick-lube shops operated by Greenbriar under the Oil Changers brand. The FTC warned that without corrective action, the merger would put too much control of the quick-service oil change market into one company’s hands, potentially driving up prices and diminishing service quality.
“The FTC took action today to ensure that quick-lube oil changes remain affordable and available for American consumers across the country,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “The FTC’s divestiture order will preserve competition that is critical to providing convenient oil changes at affordable prices to millions of consumers.”
Quick-lube outlets specialize in providing oil changes in 30 minutes or less without an appointment — a service model regulators say would become more vulnerable to consolidation without intervention.
According to the agency’s complaint, Valvoline and Oil Changers directly compete in markets across California, Kentucky, Idaho, Illinois, Indiana, Michigan, Washington, and Wisconsin. The FTC alleges that eliminating this head-to-head rivalry would likely result in higher prices and reduced service quality across those regions.
The Commission voted 3-0 to issue the complaint and accept the divestiture agreement for public comment. Members of the public will have 30 days to submit comments before the FTC finalizes the order.
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