The proposed merger of NPD and Gull has received clearance from the Commerce Commission and is expected to create a major discount fuel business.

The regulator has given a green light for Astra Energy Group to acquire all shares in Gull’s parent company – GNZ Holdco – and NPD’s parent company – NPD Group Investments.

The Commission undertook a thorough investigation into the proposed merger and found it is unlikely to substantially lessen competition in any New Zealand market.  

“Our investigation included looking at the markets within which NPD and Gull currently operate and assessing whether there would still be adequate competitive alternatives post-merger to constrain the new company’s ability to raise prices and reduce the quality of its service,” said Commerce Commission chair John Small.

The Commission also considered the likelihood of whether the merged entity and its competitors would coordinate and exercise their collective market power to restrict output or increase prices. It concluded that the deal would not change conditions in any relevant market in a way that made coordination more likely or sustainable. 

The investigation also indicated that the merged entity will be constrained in the retail and wholesale supply of fuel by the presence of other competitors, as well as independent fuel suppliers. 

Supporting lower fuel prices

The merger, first announced in December, will combine two of the country’s best-known discount fuel brands under a single business. 

Maintaining both the NPD and Gull brands, the merged entity will operate around 240 fuel sites nationwide, supplying around 1 billion litres of fuel annually. 

In a statement, NPD CEO Barry Sheridan, who will lead the merged business, said the Commerce Commission’s approval comes at a time when the cost of fuel is on every motorist’s mind. 

“At a time when every cent matters, Gull and NPD joining together will make our ability to support lower fuel prices in NZ even stronger, as we continue our legacy of being the brands New Zealanders trust for fair fuel prices,” he said.

He added that combining Gull’s Mount Maunganui fuel import terminal with NPD’s fuel truck fleet and distribution network will benefit all commercial and retail customers. 

Gull CEO Dan Gilbert said: “Being there for motorists with lower prices, every day, is something both companies have in common.

“It’s going to be exciting to see the ‘Gull effect’ and ‘NPD effect’ on fuel competition deliver even more through the combined business, a company with national scale. Beyond pricing, it brings resilience to fuel supply that benefits motorists everywhere,” he added.

The merged company will be majority owned by the Sheridan family, while private equity firm Allegro Funds – Gull’s current owner – will retain a minority stake.