Colombia: SIC blocks Terpel’s acquisition of Exxonmobil Colombia

Colombia’s Superintendence of Industry and Commerce (SIC) has blocked the planned acquisition of Exxonmobil Colombia’s fuel business by local rival Terpel, citing possible damages to competition. A related purchase of Exxon’s lubricant business was also slapped with a series of pre-conditions.

The reason offered by the market regulator is that the acquisition may lead to an undue and undesirable restriction of free competition in the fuel market.

On the other hand, while the final sale is made to another competitor, Exxonmobil Colombia’s fuel business will have to be temporarily transferred to an independent third party, with the purpose of making the final sale within six months.

In addition, the SIC imposed upon Terpel other conditions in order to ensure adequate competition in the lubricants market. Among them is an obligation to lift exclusivity deals for the distribution and display of lubricants that have been struck with their branded service stations.

Full Content: W Radio

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