Ultramar's Proposed Acquisition of Ottawa Terminal: Consent Order Sought to Maintain Competition in Ottawa Region

OTTAWA, February 16, 2000 - The Competition Bureau today filed an application for a Consent Order with the Competition Tribunal. The purpose of the Order is to maintain competition in the storage and wholesale supply of gasoline and other petroleum products in the Ottawa region.

On July 29, 1999, Ultramar Ltd. (Ultramar) announced that it had signed an agreement to purchase the terminal assets and wholesale supply business of Coastal Canada Petroleum Inc. (Coastal) in Ottawa. Coastal is the principal wholesale supplier of gasoline and other petroleum products to independent marketers in the Ottawa region.

As a result of competition concerns identified by the Bureau in the storage and wholesale supply of gasoline and other petroleum products, Ultramar has agreed to:

• several measures to ensure continued access to a competitive source of supply to the independent marketers;
  
  
• refurbish and reactivate its Ottawa terminal; and
  
  
• offer for sale the Coastal terminal in Ottawa at fair market value if it fails to abide by the terms of the Consent Order.
  
  

"Vigorous competition will remain in the wholesale and storage market for gasoline and other petroleum products and this should be of benefit to consumers," said Konrad von Finckenstein, Commissioner of Competition.

The Competition Bureau is an independent law enforcement agency that is responsible for merger review and the lawful conduct of business in Canada, as defined by the Competition Act.

For more information, please contact:

Julie Hébert
(819) 953-4257