Total Deutschland GmbH, Berlin, has withdrawn its notification of the acquisition of eleven petrol stations owned by Autohof Görgen GmbH & Co. KG, Trier, after the Bundeskartellamt had written to the company expressing its competition concerns about the merger project. According to the authority's preliminary assessment the proposed acquisition would have significantly impeded competition in the Trier market area.

Andreas Mundt, President of the Bundeskartellamt: “Fuel prices in Trier are already among the highest fuel prices in Germany. According to our preliminary assessment, the complete integration of all of Görgen’s petrol stations into Total’s distribution network would have worsened the competitive conditions in Trier too much to the detriment of motorists. The oligopoly of the leading fuel suppliers, which are also the leading suppliers throughout Germany, would have expanded its market share in Trier to over 80%. This would have had negative consequences in particular for those motorists who cannot benefit from the much lower petrol price level in neighbouring Luxembourg.”

Along with BP (“Aral” brand), Shell, Jet and the “Esso” brand petrol stations, Total is one of the leading petrol station operators in Germany. Görgen currently operates eleven petrol stations in Rhineland-Palatinate and Saarland. Six of these are concentrated in the Trier market area. The petrol stations are currently operated by Görgen under the “Total” brand. The reason for this are time-limited contracts, especially for the use of the “Total” brand. However, the planned merger would have permanently and completely integrated Görgen’s petrol stations into Total’s petrol station network.
With its six petrol stations Görgen is currently one of the leading suppliers in the Trier market area. The “Aral”, “Shell” and “Esso” brands also have strong, varyingly high market shares in the Trier market area; Jet’s presence is limited. The joint market share of the leading suppliers would reach over 80% in Trier post merger.

The investigations based on the data collected by the Market Transparency Unit for Fuels have shown that widespread parallel price setting is practised by the leading suppliers in the Trier market area, just as across Germany. Furthermore, the price level in Trier is clearly above the national average.
In assessing the effects of the merger in the Trier market area the Bundeskartellamt also took Trier’s proximity to Luxembourg into account. Due to price regulation by the state and differences in taxation, fuel prices in Luxembourg are much lower with the result that many motorists drive there to fill up with petrol. However, using Luxembourg as an alternative source of supply is not an economically viable alternative to satisfy a considerable share of demand in Trier for various reasons. Another factor which had to be considered was that most of the operators of the relevant petrol stations beyond the border to Luxembourg are the same suppliers as in the Trier market area.

According to the Bundeskartellamt’s preliminary assessment, the acquisition would have strengthened the joint dominant position of the leading fuel suppliers in Trier. On the other hand, a significant number of other competitors with in some cases substantial market shares are currently active in the other geographic markets affected in Rhineland-Palatinate and Saarland where the overall price level is lower than in Trier. Also in consideration of Görgen’s distinctly weaker market position in these markets compared to Trier, in its preliminary assessment the Bundeskartellamt did not expect the competition situation in these markets to deteriorate as a result of the merger project.

The merger project was examined in second phase merger control proceedings. Due to the withdrawal of the notification, the proceeding was concluded by the Bundeskartellamt without a formal decision. The merger project cannot therefore be implemented.

Further information on the proceeding is available in a case summary (in German) on our website.