Petrol Station Owners

[ChillyPhilly]

This part is pretty significant:

Also included are Smokemart and Giftbox tobacco and cigarette stores,

I have suspected for several years now that the OTR arm of Peregrine would be sold, but the above comes as a surprise. It does not leave Peregrine with much hands-on core business.

The ACCC probably do need to review this at a micro and macro level, because it is a step toward monopolisation.

At least now Peregrine will be able to fund the class action lawsuit claims against them...

[SBD]

This part is pretty significant:

Also included are Smokemart and Giftbox tobacco and cigarette stores,

I have suspected for several years now that the OTR arm of Peregrine would be sold, but the above comes as a surprise. It does not leave Peregrine with much hands-on core business.

The ACCC probably do need to review this at a micro and macro level, because it is a step toward monopolisation.

At least now Peregrine will be able to fund the class action lawsuit claims against them...

It leaves Peregrine with a shareholding in Viva, The Bend and Mallala Motorsport complexes including a hotel. Who knows what Peregrine might start up with any newly-spare cash.

[SBD]

It'll be interesting to see what happens with sites such as the Coles Express on West Terrace in the city.

If converted into an OTR would mean two in the space of a few hundred metres. I'm sure there'd be other examples of this in S A.

I mean how does this work from a competition (or lack thereof) perspective?

OTR has two outlets at 43-45 and 23-29 Main North Road Smithfield as well as one less than 2km away on Curtis Road, Munno Para. There's Coles Express on the opposite side of Main North Road not much further down.

There are Ampol, Liberty and AM/PM in the surrounding area, and a proposed X-Convenience on the corner of Curtis and Main North Roads. I will be surprised if they are able to keep three sites that close though. They might redevelop the Coles Express then close/sell the smaller OTR (ex-BP acquisition)

[Jaymz]

It'll be interesting to see what happens with sites such as the Coles Express on West Terrace in the city.

If converted into an OTR would mean two in the space of a few hundred metres. I'm sure there'd be other examples of this in S A.

I mean how does this work from a competition (or lack thereof) perspective?

OTR has two outlets at 43-45 and 23-29 Main North Road Smithfield as well as one less than 2km away on Curtis Road, Munno Para. There's Coles Express on the opposite side of Main North Road not much further down.

There are Ampol, Liberty and AM/PM in the surrounding area, and a proposed X-Convenience on the corner of Curtis and Main North Roads. I will be surprised if they are able to keep three sites that close though. They might redevelop the Coles Express then close/sell the smaller OTR (ex-BP acquisition)

Even more interesting is that Viva also own the Liberty brand, so there's even more to throw into the mix. Who's to say their plan isn't to also turn Liberty servos into OTR??

I have read that this deal is dependent on approval from a couple of regulators, one of them being the ACCC of course. I'm sure they'll have some concerns when looking at the detail.

[[Shuz]]

I think every man and his dog has concerns about OTR expanding even more. If anything they need to break up and allow more competition.

[SBD]

I think every man and his dog has concerns about OTR expanding even more. If anything they need to break up and allow more competition.

What is your specific concern about OTR?

Are you concerned in particular about large privately owned business (which will change if the Viva transaction goes through), concentration of market (which will still have more operators than many other industries) or something else I haven’t thought of?

[SBD]

It'll be interesting to see what happens with sites such as the Coles Express on West Terrace in the city.

If converted into an OTR would mean two in the space of a few hundred metres. I'm sure there'd be other examples of this in S A.

I mean how does this work from a competition (or lack thereof) perspective?

OTR has two outlets at 43-45 and 23-29 Main North Road Smithfield as well as one less than 2km away on Curtis Road, Munno Para. There's Coles Express on the opposite side of Main North Road not much further down.

There are Ampol, Liberty and AM/PM in the surrounding area, and a proposed X-Convenience on the corner of Curtis and Main North Roads. I will be surprised if they are able to keep three sites that close though. They might redevelop the Coles Express then close/sell the smaller OTR (ex-BP acquisition)

Even more interesting is that Viva also own the Liberty brand, so there's even more to throw into the mix. Who's to say their plan isn't to also turn Liberty servos into OTR??

I have read that this deal is dependent on approval from a couple of regulators, one of them being the ACCC of course. I'm sure they'll have some concerns when looking at the detail.

The other regulatory body approval required is from the Foreign Investment Review Board (FIRB). Viva is listed in Australia but slightly over 45% of the shares are held by a subsidiary of the previous controlling entity, Dutch company Vitol through its subsidiary VIP Energy Australia BV.

The area I think of as "local" will have a total of five OTR/Coles Express/Liberty, but also Ampol, AM/PM and soon X-Convenience, so there will still be competition. The same area has 2x Woolworths, 2x Aldi, 1x Coles and 1x Foodland but I can't think of an IGA-branded or other smaller supermarket that doesn't sell fuel, nor Drakes. It has 2 McDonalds, 2 KFC, Hungry Jacks, Red Rooster (and one of the OTRs has Oporto).

[1NEEDS2POST]

How will this work with the Coles 4 c/L fuel discount at Coles Express? Everything is usually cheaper at Coles Express than other servos, so it will be disappointing to see them leave. All the more reason to buy an electric car.

[SBD]

How will this work with the Coles 4 c/L fuel discount at Coles Express? Everything is usually cheaper at Coles Express than other servos, so it will be disappointing to see them leave. All the more reason to buy an electric car.

I get a discount off the signboard price for fuel at OTR by using the OTR app. Drakes has a discount deal with X-Convenience I think.

At the moment in SA, Convenience Stores that sell fuel have different trading restrictions from convenience stores that do not sell fuel. Our trading laws need a complete rethink in many areas, and this is another one. The largest supermarket in my area is the "independent" Foodland, bigger than the nearby Coles, Woolworths and Aldi stores. I'm not sure how much smaller the largest OTR is than the smaller of the "normal" supermarkets.

[rev]

How will this work with the Coles 4 c/L fuel discount at Coles Express? Everything is usually cheaper at Coles Express than other servos, so it will be disappointing to see them leave. All the more reason to buy an electric car.

Not getting something cheaper at Coles Expres/Shell, is a reason to run off and go by an electric car?

Other service station chains and supermarkets offer discounts too.

Want cheaper groceries? Try Costco. Cheaper then Coles.
Cheaper fuel then Coles Express/Shell too.

[bits]

At the moment in SA, Convenience Stores that sell fuel have different trading restrictions from convenience stores that do not sell fuel. Our trading laws need a complete rethink in many areas, and this is another one. The largest supermarket in my area is the "independent" Foodland, bigger than the nearby Coles, Woolworths and Aldi stores. I'm not sure how much smaller the largest OTR is than the smaller of the "normal" supermarkets.

Actual convenience stores that are not deemed a large store due to the store footprint size do not have trade restrictions.
Small stores outside of large malls can open whenever they want.
Many drake minis and others fit within that small size and open 365 days, trading early and late etc.

A large store like a normal drake's, Foodland, Coles, Woolworths, aldi etc have trading restrictions.
Eg your large Foodland has trade restrictions because it is a large store. It being "independent" is irrelevant to its trading restrictions.

I am not sure if the refuelling area of a petrol station would count as part of a store. A supermarkets carpark does not count.
I don't think any otr petrol station buildings would be large enough to be classed as a large store.
I think they are small enough even without fuel they could just open whenever they liked under current Sa shop trading hours.
But due to fuel being sold the small/large check may not apply.

[Bacon]

A few Coles Express sites have started to rebrand as Caltex this week.

[Norman]

Caltex? I think you mean Ampol?

[85trainfan]

Caltex? I think you mean Ampol?

Nope, Caltex.
Shell Reynella has a sign up stating last day of Shell is Monday 19th Feb, Reopening as a Caltex on Wed 21st Feb.

[Bacon]

Caltex? I think you mean Ampol?

Chevron licenced out the Caltex brand to Caltex Australia. This agreement was not renewed forcing Caltex Australia to rebrand to Ampol. Chevron are now expanding their own network in Australia using the Caltex Brand.