The Federal Trade Commission (FTC) has announced that Valvoline Inc. and Greenbriar Equity Fund V., L.P. must divest 45 quick-lube oil change shops to address antitrust concerns related to their $625 million transaction. Under the terms of the FTC’s proposed order, Main Street Auto, LLC will acquire these divested outlets from Greenbriar.
Valvoline plans to purchase about 200 quick-lube oil change locations from Greenbriar, which currently operates them under the Oil Changers brand through a subsidiary. These shops offer oil changes in less than 30 minutes without requiring appointments.
According to the FTC, this action is intended to prevent higher prices and reduced service quality for quick-lube oil changes in several states, including California, Kentucky, Idaho, Illinois, Indiana, Michigan, Washington, and Wisconsin.
Daniel Guarnera, Director of the FTC’s Bureau of Competition stated: “The FTC took action today to ensure that quick-lube oil changes remain affordable and available for American consumers across the country. The FTC’s divestiture order will preserve competition that is critical to providing convenient oil changes at affordable prices to millions of consumers.”
The agency alleges that Valvoline’s acquisition would reduce competition in 25 local markets where both Valvoline and Oil Changers operate. Without the required divestitures, the deal could have led to increased prices and lower service standards for customers seeking fast oil change services in those areas.
The Commission voted unanimously (3-0) to issue a complaint and accept a consent agreement for public comment. The public has 30 days to submit comments on the proposed agreement package; instructions are available on the docket with processed comments posted on Regulations.gov.
An administrative complaint is issued by the Commission when it believes there may be a legal violation and determines that further proceedings serve the public interest. A finalized consent order carries legal force regarding future actions.
The FTC aims to promote competition while protecting and educating consumers. More information about how competition benefits consumers or how to file an antitrust complaint can be found through official FTC channels online.
