AG blocks Irving's buy of petroleum assets
The state's attorney general has reached a settlement with Canada-based Irving that prevents it from acquiring petroleum-products terminals in Maine.
In November 2009, Irving Oil Terminal Inc. and Irving Oil Ltd. proposed acquiring ExxonMobil's terminals in South Portland and Bangor, as well as a pipeline that connects them, a move that the Office of the Maine Attorney General challenged, according to a press release. Attorney General William Schneider said the acquisition would have substantially reduced competition and violated Maine's merger laws. The settlement, which is subject to court approval, does not allow Irving to solely acquire the terminals or pipeline, and requires prior notification if Irving enters into other ownership interests in petroleum-products transportation or storage in Maine. The settlement is in effect for 10 years.
The terminals and pipeline are still changing hands, however. The South Portland terminal will be acquired by a joint venture between Irving and Texas-based Buckeye Partners LP, according to the release. Irving is barred from having more than a 50% ownership interest in that terminal, which Buckeye will solely operate. Buckeye will also acquire the ExxonMobil terminal in Bangor and the pipeline.
"Promoting competition in an industry where consumer impact is high is critical, particularly in these times of rising fuel and gasoline prices," Schneider said in the release.
Most Recent
Most Recent
Comments