petrolina exxonmobil — petrolina exxonmobil — Cyprus’ Commission for the Protection of Competition (CPC) has approved the acquisition of ExxonMobil Cyprus Limited by Petrolina (Holdings) Public Limited through Med Energywise Ltd, subject to specific conditions. This decision follows a comprehensive investigation into the transaction.
- The full decision regarding this acquisition will be published in the Republic’s Official Gazette and will also be available on the CPC's website.
After the CPC’s meeting this week, the commission stated that the proposed commitments from Petrolina sufficiently addressed earlier competition concerns. “The commission unanimously decided to declare the merger compatible with the functioning of competition in the market,” it reported, acting under Article 28(1)(a) of the law.
The deal was initially notified to the CPC on February 17, 2025. However, in a subsequent meeting in September, the authority raised serious doubts about the transaction’s compatibility with competitive practices, prompting a full investigation.
During the inquiry, the CPC gathered additional information from both parties involved in the merger and market stakeholders. In response, Petrolina presented a series of commitments aimed at alleviating the CPC’s concerns, which were scrutinised and led to a formal report to the commission.
After further negotiations, the CPC accepted a revised package of commitments that will shape the future operations of the merged entity. A significant condition is that the new entity must divest, sell, or close 21 petrol stations. Additionally, for a decade, Petrolina or the new entity is prohibited from reacquiring or operating any of the divested stations, and for seven years, it cannot replace or acquire a fuel station within a four-kilometre radius of these locations.
Petrolina has also agreed to provide mixed storage capacity at its privately owned Vasilikos facilities to third parties for at least two years post-completion, with potential for a one-year extension if certain conditions are not met.
To ensure compliance, the CPC has imposed strict information-firewall obligations. These will prevent staff and decision-makers of the new entity from accessing sensitive information between different operational areas, such as import and storage versus wholesale and retail activities. Confidentiality manuals will be established, and formal declarations will be signed to uphold these standards.
Existing service contracts inherited from ExxonMobil Cyprus will remain effective until their expiry, contingent on meeting contractual obligations. Upon expiry, Petrolina must either renew these agreements for a minimum of two years or initiate an open tender process.
Moreover, the CPC has prohibited the imposition of exclusivity clauses on service providers and fuel stations. Specifically, for ten years following the completion of the merger, Petrolina or the new entity cannot enforce exclusive lubricant supply obligations on stations acquired through the deal.
An independent trustee will be appointed within a month of the decision notification to oversee compliance and manage the divestment process. The CPC has warned that non-compliance with the stipulated conditions could result in penalties of up to 10 per cent of the annual turnover of the notifying party, alongside daily administrative fines. Furthermore, the commission retains the right to revoke or amend its decision should false or misleading information arise or if commitments are not fulfilled.
The full decision regarding this acquisition will be published in the Republic’s Official Gazette and will also be available on the CPC’s website.
