Maxol is to expand the number of service stations it owns in Leinster following the approval by competition regulators of its plans to buy Naas Fuels.
The Competition and Consumer Protection Commission (CCPC) cleared the company’s proposed purchase following an “in depth” investigation of the plan.
Maxol notified regulators of its intention to buy the company, which owns seven Circle K-branded service stations in the Leinster region, in December. In April the CCPC said it would carry out a full investigation to establish if the proposed acquisition would lead to less competition in the State.
“The CCPC concluded that Maxol will continue to compete with other suppliers in the retail sale of motor fuels and the operation of forecourt convenience stores,” regulators said in a statement. “As a result, the CCPC has determined that the proposed acquisition will not substantially lessen competition and can be put into effect.”
The acquisition includes seven sites located in Ballylinan, Co Laois; Gorey, Co Wexford; Kiltale and Ratoath in Co Meath; Maganey, Co Carlow; Prosperous, Co Kildare; and Wicklow Town. The stations currently operate under the Circle K brand, with Gala convenience stores on-site.
The deal will bring the number of Maxol-branded sites across the island of Ireland to 252.
As part of the investment, the company plans to spend €3 million on swapping out the Circle K branding and signage for Maxol stores and forecourts, and fitting out the stores with the deli, Rosa Coffee stations and Maxol car wash facilities. Existing staff employed at the stations will transfer to Maxol with the new sites operated by independent retailers under licence from Maxol.
“This acquisition is central to our long-term strategic plan to invest in retail sites that offer the potential for growth in the core areas of neighbourhood food convenience and top-up shopping,” said Maxol chief executive Brian Donaldson. “Today’s announcement is a statement of our intent for the business.”
The purchase of the service stations and the subsequent investment is part of Maxol’s €100 million strategy for growth it announced last year.
The company also recently launched its first rapid electric vehicle charging hub in the Republic of Ireland, installing six high-speed 200KW chargers at Maxol Newbridge. It is planning a second hub at Maxol Ballycoolin in the next 12 months.
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