Newsroom
Cyprus’s competition watchdog has launched a full investigation into Petrolina’s planned takeover of ExxonMobil Cyprus, warning the deal could harm competition in the country’s fuel market.
The Commission for the Protection of Competition (CPC) said the merger raises “serious doubts” about whether it would be fair for consumers and other players in the industry. Petrolina, through Med Energywise Ltd, wants to acquire ExxonMobil Cyprus’s share capital.
According to the CPC, the merger could give Petrolina too much power in several parts of the fuel business, from importing and storing petroleum to wholesale and retail sales. Regulators worry this could lead to higher fuel prices, fewer choices for consumers, and less room for smaller competitors to survive.
At a local level, the CPC noted the merger could especially squeeze competition within a 4-kilometer radius of the companies’ petrol stations, where overlaps could make it harder for rivals to compete. On a broader scale, the watchdog is also examining whether the new entity could restrict other companies’ access to storage facilities, fuel supplies, and customers.
The CPC has now opened a four-month investigation to study the risks in detail. It has also invited input from anyone who may be affected, including competitors and consumer groups.
