Fuel retailers NPD and Gull have announced plans to merge their nationwide operations, creating what they say would be New Zealand’s largest independent, majority locally owned fuel company, pending Commerce Commission approval.
The proposed deal would combine their 240 sites, staff and fuel supply chains while keeping both brands operating separately, with Gull mainly in the North Island and NPD in the South.
Ownership would be split evenly between the South Island-based Sheridan family, with NPD chief executive Barry Sheridan set to lead the new company, and Gull owner Allegro Funds.
The companies say the merger would increase buying power to around one billion litres of fuel a year, reduce duplicated systems and help deliver lower fuel prices, with a formal clearance application expected to be lodged in January.
Will the new lower buying power be passed on to the consumer or the newly formed parent company?
I suspect the latter.
Each of us buys and sell things. When we sell, we want the highest price possible. Less competition in the area allows us to do just that.
Unlike products we consumers buy from Temu, trademe and ebay, petrol has to be purchased in the location you live. Mergers are consolidation and may give better buying power. But they reduce competition and service. If you are thw only seller in town, you can charge whatever you like.
Brethren Own all the good businesses
Out of interest
https://www.youtube.com/watch?v=y9hKxEIfQNc
A masterpiece