• The Office of Competition and Consumer Protection (UOKiK) has presented reservations regarding the acquisition of some of the assets of Arge Paliwa and Arge Nieruchomości by BP Europe.
• The concentration may restrict competition.
• The reservations do not prejudge the final decision on this matter.

BP Europe’s activity in Poland involves, among others, wholesale and retail sale of fuels. Arge Paliwa also conducts such activities. Arge Nieruchomości’s primary activity is management, rental and sale of its own properties.

In this matter it was necessary to carry out a market investigation and to verify data provided by BP in its request for approval of the transaction. Therefore, the Office proceeded with the case to phase II of the procedure. About 100 competitors of the concentration participants were asked for their views on the acquisition, own sales volumes and the territorial scope of their activity.

The answers indicated, among others, the area in which petrol stations compete with each other. UOKiK assumed that these are local markets, which, e.g. in cities, are determined by a radius of up to 2.5 km or up to 5 km travelled by car on public roads from the station being taken over.

The respondents also mentioned the specific situation at petrol stations in Cieszyn. Both BP Europe and Arge have petrol stations on both sides of the expressway. They are the first stations encountered by drivers entering Poland and the last ones they pass when leaving the country. Therefore, the Office concluded that irrespective of the market definition adopted, the parties to the concentration compete directly with each other in that area. Competition may also be restricted in Kraków, in a market determined from the location of one of Arge's petrol stations. Therefore, UOKiK decided to issue reservations concerning the concentration.

14 days to reply

In cases where there is a reasonable likelihood of a significant restriction of competition as a result of concentration, the President of the Office of Competition and Consumer Protection presents reservations to the entrepreneurs participating in the concentration with respect to the planned transaction. Such reservations indicate the reasons for which they were issued and do not prejudge the final outcome of the proceedings.

According to the regulations, entrepreneurs have 14 days to respond to the reservations. This period may be extended by a further two weeks at their request.

Additional information for the media:

The UOKiK Press Office

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