The Federal Trade Commission (FTC) has intervened to address antitrust concerns regarding Alimentation Couche-Tard Inc.'s (ACT) proposed acquisition of 270 retail fuel outlets from Giant Eagle, Inc. The deal, valued at $1.57 billion, raised concerns about potential increases in fuel prices for consumers in Indiana, Ohio, and Pennsylvania.
ACT operates over 7,100 stores across the United States under the Circle K brand. To resolve these concerns, the FTC will require ACT to divest 35 gas stations to Majors Management, LLC. This decision is part of a consent order that aims to maintain competition and prevent higher fuel costs.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, stated, “This anticompetitive acquisition threatened to make Americans pay more at the pump by raising fuel prices.” He emphasized that the FTC's action is crucial for preserving competition among gas stations.
The original structure of ACT's acquisition would have reduced competition between ACT and Giant Eagle in 35 local markets where they currently monitor each other's pricing strategies. The complaint suggested that ACT could unilaterally increase fuel prices by eliminating this competition and potentially facilitate coordinated interactions among remaining competitors.
Majors Management's acquisition of the divested stations will introduce a new competitor in these markets. The FTC's order requires several conditions: completion of divestitures within 20 days post-acquisition by ACT; maintaining economic viability of stations until transfer; a prohibition on re-acquiring divested stations for 10 years; and prior notice to the FTC before acquiring any competitively significant stations.
The FTC commissioners unanimously voted 3-0 to issue the complaint and accept the consent agreement for public comment. Commissioner Mark R. Meador issued a statement regarding this decision.
Public comments on the proposed consent agreement package are open for 30 days with instructions available on the docket at Regulations.gov.
The FTC continues its mission to promote competition and protect consumers. More information about consumer benefits from competition or filing an antitrust complaint can be found through their resources.
