Competition watchdog investigates potential deal between Maxol and Naas Fuels 

Maxol notified the CCPC of its intention to acquire Naas Fuels last December. Picture: Andy Gibson

The competition watchdog has said it will open an in-depth investigation into a deal proposed by Maxol to purchase Naas Fuels service stations.

Naas Fuels owns seven service stations in Leinster and the Competition and Consumer Protection Commission (CCPC) is set to examine how the potential deal will affect levels of choice in the market.

“Certain mergers and acquisitions may reduce competition in a market, for example by creating or strengthening a dominant player,” said the watchdog.

“This is likely to harm consumers through higher prices,” it said.

Maxol, a significant player in the forecourt market in Ireland, notified the CCPC of its intention to acquire Naas Fuels last December.

Maxol is a subsidiary of Maxol Energy, which forms part of the McMullan Bros company owned by the McMullan family.

The business was set up in 1920 and is Ireland’s largest family-owned forecourt.

The firm sells oil and petroleum products across 243 service stations on the island of Ireland. These are owned either by independent dealers or directly by Maxol itself.

Naas Fuels owns and operates Circle K-branded retail motor fuel service stations and attached forecourt convenience stores, which would be absorbed by Maxol if the deal is successful.

Naas Fuels owns Circle K-branded service stations, which would be absorbed by Maxol if the deal is successful. Picture: Colin Keegan/Collins

As part of its investigation, the CCPC will gather evidence from the parties involved in the proposed transaction and other third parties.

Submissions from these parties can be made until 4.30pm on April 24.

Meanwhile, the CCPC recently carried out a merger review into a separate deal by Maxol.

The company notified the CCPC last June of its plan to snap up Kinsella’s Fuel Services.

Over the past decade, Maxol has purchased 25 new sites and has steadily expanded its presence across the island of Ireland.

Since 2012, it has spent more than €200m on both new sites and the redevelopment of its existing network.

In 2022, Maxol pledged to invest €100m as part of the forecourt and convenience retailer’s 2023-2027 strategic plan.

“We are particularly interested in businesses that already have a strong convenience and food offering, as this is the direction in which our business model has been moving for a number of years,” said chief executive Brian Donaldson in 2023, suggesting there are no plans to slow growth amid an inflationary environment and stubborn cost pressures, especially in retail and hospitality.

At the end of last year, Maxol also injected money into its food and beverage services as it announced a €10m five-year contract with Bewley’s.

Hybrid working

Meanwhile, Mr Donaldson previously referenced hybrid working as a driver of business for Maxol stores, the majority of which are located in residential neighbourhoods. 

He said Maxol has experienced a direct correlation between the move to a hybrid working model and increased footfall in its stores, with some exceptions such as sites that are closest to Dublin city centre that would have traditionally benefited from commuter traffic five days a week.

“Where people are now working from home two or three days each week, we are servicing their needs from breakfast through to evening," said Mr Donaldson at the Maxol retail conference last year.