Attorney General's Office Makes Legal Filins To Protect Consumers In Private Firm's Acquisit
HARRISBURG — Pennsylvania Attorney General Kathleen G. Kane's office today announced two legal filings made in federal court that will ensure competition in various markets throughout the Commonwealth following a private equity firm's acquisition of a leading petroleum supplier.
The complaint and consent judgment filed in the U.S. District Court for the Middle District of Pennsylvania resolve competitive concerns associated with the proposed acquisition of Gulf Oil L.P. by ArcLight Energy Partners Fund VI, L.P. The filings were made in conjunction with an administrative complaint issued by the Federal Trade Commission.
The Office of Attorney General and the FTC started their investigation of the proposed acquisition after an agreement for the deal was signed in May. The Office of Attorney General's Antitrust Section examined whether the acquisition would have the effect of substantially lessening competition concerning gasoline terminal services and distillates terminal services across the Commonwealth.
The investigation showed the proposed acquisition in some areas would reduce the number of terminals from two to one, or from three to two. The parties have agreed to divest four terminals in the Commonwealth to proceed with the transaction. The terminals are located in Altoona, Pittston Township (Luzerne County), Mechanicsburg and Williamsport.
The legal filings call for the terminals to be divested to a third party.
According to the filings, Boston-based ArcLight is a private equity firm focused on energy infrastructure. It owns and operates 12 refined petroleum products storage terminal facilities in Pennsylvania.
Gulf Oil L.P. is a subsidiary of Cumberland Farms. Gulf Oil, based in Framingham, Mass., is engaged in the sale and provision of gasoline terminaling services and distillates terminaling services. According to the filings, it owns and operates 12 terminals, seven of which are located in the Commonwealth.
The Commonwealth’s case was handled by Senior Deputy Attorney General Joseph S. Betsko of the office’s Antitrust Section, which is tasked with protecting the free enterprise system by detecting anti-competitive practices and taking legal action to stop them. The Section is also tasked with reviewing and challenging proposed mergers that may result in consumers or states agencies paying higher prices.
