Competition authority seeks public views on Eneos Apac’s proposed acquisition of Chevron Singapore

[SINGAPORE] The Competition and Consumer Commission of Singapore (CCS) is inviting public feedback on the proposed acquisition of Chevron Singapore – a distributor of petroleum products – by Eneos Apac, a subsidiary of energy, resources and materials group Eneos.

The authority on Oct 2 accepted the companies’ application for a decision on whether the proposed transaction would infringe section 54 of the Competition Act 2004.

Chevron Singapore is a subsidiary of Chevron South Asia, which is indirectly wholly owned by Chevron Corp.

It is primarily a downstream petroleum company with operations in Singapore and Vietnam.

In Singapore, Chevron Singapore engages in the retail distribution of fuels and lubricants. It holds an equity interest in Singapore Refining Company, a 50:50 joint venture with Singapore Petroleum Company (SPC).

Chevron Singapore’s activities also include fuel storage and terminal operations and lubricants blending and wholesale.

The company operates under the Chevron brand in the Republic.

It also goes by:

• Caltex, for retail petrol and diesel;
• Delo, for commercial and industrial lubricants;
• Havoline for passenger vehicle lubricants;
• Star Mart, for convenience retail offerings at service stations;
• Texaco, a legacy brand in fuels and lubricants; and
• Techron and Techron D, for fuel additives.

Meanwhile, Eneos is a Japan‑headquartered energy, resources and materials group with global operations.

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In Singapore, it is active in the trading of crude oil, naphtha and refined petroleum products, lubricants blending and wholesale, the supply of marine fuels and solar energy solutions.

The company mainly operates under the Eneos brand. 

If the proposed acquisition were to be completed, Chevron Singapore would continue to operate under the Chevron and Caltex brands.

Eneos would “step into Chevron’s current operations in Singapore”, CCS added. Chevron Singapore would continue to source Chevron-branded products and raw materials mostly from Chevron Corp.

Eneos Apac believes that it only overlaps with Chevron Singapore in the market for lubricant blending and wholesale supply in the city-state.

The proposed transaction will not raise any material competitive concerns, it said, “given the significant number of existing competitors, relatively low barriers to entry and expansion, and ability of customers to multi-source and switch among credible alternative lubricant suppliers in Singapore at minimal cost”.

Eneos Apac also submitted that no material vertical effects are anticipated.

Chevron Singapore faces significant competitive constraints across its relevant active markets such as fuel refining, storage and terminal services, retail distribution of fuels and lubricants, it said, while Eneos has a limited market presence in lubricants blending and wholesale in Singapore.

CCS wants to hear views from the public on the impact of this proposed acquisition on competition. Submissions – which can be done via its online form or through e-mail – will close at 5 pm on Oct 16.