The French oil company Total and the Belgian oil and petrochemical company PetroFina are respectively active in the production of hydrocarbons, refining, distribution of petroleum products, and in the oil and petrochemicals industry.

Total acquired the control of PetroFina through the acquisition of 40.9% of PetroFina's capital and through a public bid on the remaining shares. This new merger forced competition of « non-forecourt sales » of refined petroleum products in some areas of the Northern part of France. One can mention that « non-forecourt sales » are sales made to resellers or large end users. Total's refinery in Dunkirk and PetroFina's storage depot in Féluy are the two main fuel suppliers to these areas.

Therefore they decided to undertake structural changes. They are going to divest part of their participations in petroleum storage depots to permit alternative supplies in these areas. Moreover they decided to offer to their regular clients of the storage depots at Valenciennes and Féluy contracts for the purchase of refined petroleum products for a period of three years.

For all these reasons, the European Commission cleared this merger. But as regards the merger of petroleum storage infrastructure in the Southern part of France, part of the case has been referred to the French competition authorities.

One can specify that this national merger review procedure has no suspension effect, so the operation can be put in practice.

This article is based and incorporates information provided by the European Commission (Press Releases) and is intended for general information. Specialist advice should be sought before acting on it.