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ATTORNEY GENERAL IMPOSES CONDITIONS ON DEAD RIVER/IRVING OIL DEAL
February 20, 2003
FEBRUARY 20, 2003
FRANCIS ACKERMAN, ASSISTANT ATTORNEY GENERAL
The Maine Attorney General's Office has approved the acquisition by Dead River Company of home heating oil and propane assets of Irving Oil Corporation in Aroostook County and some sections of Penobscot and Washington Counties. The deal will be permitted to proceed subject to conditions imposed by a Consent Decree. The conditions, which are designed to resolve antitrust concerns raised by the acquisition, affect the transaction as it relates to propane. "Our antitrust review showed that post-acquisition, Dead River would have a monopoly position in the wholesale propane market in Aroostook County," said Assistant Attorney General Francis Ackerman. "This was an obvious cause for concern."
The Consent Decree imposes three principal conditions. First, it requires Dead River to offer wholesale storage capacity at its Caribou propane bulk facility to Irving and at least one other competing wholesaler, on a so-called "throughput" basis. It also commits Irving to offer to supply Aroostook County propane retailers with their propane needs, in competition with Dead River. Finally, the Decree requires Irving to sell its own bulk storage facility, located in Presque Isle, to a company willing to enter the wholesale propane market.
The Attorney General's Office is optimistic that new entrants will step forward to bring renewed competition to Aroostook County propane markets under the terms of the Decree. Companies interested in entering into a throughput arrangement at the Caribou bulk facility should contact Dead River; those interested in acquiring Irving's bulk storage plant should contact Irving directly. To read the Consent Decree, click HERE.