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Friday, July 30, 2010

Regulators allow 7-Eleven Purchase of Exxon

The Wall Street Journal

Australia's competition watchdog has approved 7-Eleven Pty. Ltd.'s proposed takeover of Exxon Mobil Corp's Australian filling stations, conditional on the divestment of a few individual stations.

Privately-owned 7-Eleven recently agreed to buy Exxon Mobil's 295 stations for an undisclosed sum after the regulator blocked an agreement to sell them to Caltex Australia Ltd. for around A$300 million.

7-Eleven, which has a license to operate and franchise stores in Australia from U.S.-based 7-Eleven Inc., doesn't have a presence in South Australia state and will on-sell Exxon Mobil's filling stations there to private company Peregrine Corp.

The Australian Competition and Consumer Commission said it has competition concerns at one site in New South Wales state, two in Queensland and one in South Australia.

The ACCC said it has received confirmation from 7-Eleven that it will divest three sites, and also from Peregrine that it will divest one site.