Investigation into Intense Competition Launched over Petrolina-ExxonMobil Agreement in Cyprus
The Cyprus Commission for the Protection of Competition (CPC) has initiated a comprehensive investigation into the proposed acquisition of ExxonMobil Cyprus Limited's share capital by Petrolina (Holdings) Public Ltd, through Med Energywise Ltd.
The CPC's concerns revolve around the high concentration in the petroleum import and sales markets, and the close competitive proximity between Petrolina and ExxonMobil. The Commission is examining the potential impact of the merger on various market layers, including vertical and neighboring markets.
One of the key areas of concern is the chain of petroleum import, storage, and wholesale. The CPC is investigating whether the new entity might restrict competitor access to storage facilities, supplies, or customers. Horizontally, the deal could impact the petroleum import market, the wholesale petroleum sales market, and the retail petroleum sales market.
The investigation also extends to retail fuel sales and land-based distribution. Additionally, the CPC is scrutinizing specialized construction and electromechanical services related to fuel station operations.
The Commission has expressed concerns that the merger could reduce competition at a local level, particularly within a 4 km radius around fuel stations operated by the two companies. Wholesale lubricants are another area of concern.
The CPC has invited individuals or entities potentially affected by the decision to submit their views. The final decision must be issued within four months from the moment the CPC possesses all necessary information.
The investigation was initiated during the CPC's meeting on September 10, 2025, following a review of the relevant report by the CPC Service. The Commission concluded that the merger raises concerns regarding its compatibility with competitive market operations.
Organizations potentially influenced by the sale of ExxonMobil's stake in ExxonMobil Cyprus Limited to Petrolina Public Ltd through Med Energywise Ltd include Petrolina Public Ltd and ExxonMobil Cyprus Limited. The Cypriot Commission for the Protection of Competition has already invited potential competitors to express their opinion on the transaction.
The CPC's investigation into the Petrolina-ExxonMobil merger continues, aiming to ensure a competitive and fair market for all stakeholders in Cyprus.
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