Supermarket owner hopes to buy domestic gas supplier
(CNS): The Utility Regulation and Competition Office (OfReg) has been conducting a stakeholder consultation in relation to a bid by Fosters’ Group, which owns the Foster’s supermarket chain, to buy Home Gas Limited (HGL). Documents posted on the regulator’s website have already drafted a determination saying that the supermarket owner’s acquisition of the domestic propane supplier would not substantially impact competition in the market.
OfReg said the application by Foster’s to buy all the shares in Home Gas, which was submitted in March, is not anticipated to have an adverse effect on the sector or be contrary to the public interest.
Given that Clean Gas is the only other supplier of liquid propane, it is not clear who else was involved in the consultation, which opened on 23 June and closes tomorrow, 6 July.
OfReg said that there were no significant concerns about the transaction. However, the regulator considered the potential bundling of services, which may be initially beneficial to consumers but can be detrimental to competition in the long term.
It also considered the advantage that Foster’s strategic facilities and locations would give to HGL and the cross-subsidisation the expanded company would receive, as well as the loss of business that Clean Gas would face, given its existing supply arrangement with Foster’s.
OfReg said in its draft determination that it had “reviewed the responses received” and was “satisfied that there are no materials reasons to disapprove the transaction, on the basis that the purchaser will continue to operate the company with no changes to the operational, management and customer relations programme and arrangement in place”. The regulator said that it must be notified about any future changes, which are then subject to approval.
OfReg said it has provisionally approved the transaction, though no price has been revealed.
See the documents on OfReg’s website here.
- Fascinated
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- Bored
- Afraid
Just heard that OfReg hasn’t had an economist in a decade or more.
Buying Home Gas does not impact competition in the gas market, because there isn’t any.
supermarket’s acquisition of the domestic propane supplier would not substantially impact competition in the market. Wait a minute. Where’s the competition for 20 pd cylinders of LP in Cayman? Home Gas and Rubis Stations, and at $56.00 US per 20 pds. that’s outrageous. I get it, it comes from US high transportation cost etc, etc but when you can buy the same thing in the US at Home Depot or Walmart for about $18-19 dollars somethings not right 😳😳😳
This should be now floated on the StockExchange. OfReg wake up!
This acquisition flys in the face of Mr. Gough’s recent public comment “Our major consideration is to encourage competition.” This is not encouraging competition it is fostering, pun intended, the formation of a new monopoly. It’s a travesty! What’s more worrisome is Dart Group’s subtle but sure take over and control of all our key infrastructure. What’s next, will OfReg facilitate his acquisition of a major telecom provider? Most people are ignorant to the companies behind these take overs so it’s easy to see why no alarm bells are sounded.
@6:27pm with Dart’s recent purchase of shares in Fosters, it won’t be long when just like Blackbeards and Big Daddys they will all be under the the Dart Branding.
Dividing the family for the love of money..Expected better!
I remember that time on CNS when they bought Hurley’s. Kirk’s too.
Hmmmm, watch out for the not so invisible hand again in this through the web of corporate vehicles. Looks like we need some anti-trust legislation here now so that the economic holdings of certain people are closely regulated and made transparent.
Anti-trust legislation is needed.
This should be corrected to say that it is not the supermarket division of Fosters that is making the purchase but the main holding company of the entire Foster group.
Same dog puppy.
Monopoly money
Wish they were willing to sell some of the shares to the general public, they should be convinced to list them on the Cayman Islands stock exchange.
The rich get richer, but eh, rather it be woody than uncle dart.
Pull the wool off your head. Little do you know🤦♂️
Don’t we mean Dart buying all the shares? He now has his proxy companies buying up everything. The end is approaching!
@3:45pm..Well, last time I checked Mr. Dart is a Caymanian. He has a cash cow producing $5 BILLION a year in turnover.
He needs to invest it safely….and he is a Caymanian citizen…
Need i go on?
what interest is there for this type of acquisition? another big owner to control even more supply…..
Could Dart be behind this ….
Duh…ya think?
OMG! Hope service doesn’t deteriorate to the levels at Foster’s Republix in West Bay!
Wake up Mr. Woody, WB needs a new mgr.
WOW! Another acquisition by DART through another of there Web of companies!
I am fine with the Fosters buying Home Gas. I know personally three of the primary folk and their parents; I WANT the rich Caymanians to buy stuff and own it. In this case, the primary folk are decent people and part of us. I don’t resent them being rich and I don’t envy them their problems.
Nice to see a ‘local’ transaction. Congrats to both sides… the business line will be in good hands for the foreseeable future.
What d hell does a supermarket know about operating a utility firm? We need a merger and monopolies commission here now, since OfReg will rubber stamp any and everything.
I smell smoke.
I smell Dart and it stinks
That’s your top lip you be smelling.
One Caymanian company selling out to another Caymanian company. Where does this dyslectic OfReg fit into this picture? Just more beaucratic bill…t that will only result in more cost to the public.
Close it down!!!
Changing the order in addition does not change the sum.
Wonder if OfReg has considered that maybe the island’s largest developer is the controlling interest behind Fosters?
This island is controlled by several all powerful families. This is simply the status quo.
Light up the Bat Signal
In california…propane usage is about to be banned because of its effects on climate change…harmful to atmosphere..
This is old news, deal was done in principal ages ago.
I hope everyone knows that DART know owns a big slice of the Foster’s Group now. Big rift in the family over that one.
Or not.
ooh juicy gossip – do tell!
Govt commissioned a report from experts many years ago concerning the location of the propane storage facility on Walkers Rd. The report stated unequivocally that the facility should be relocated as it was close to private homes, schools and on a road carrying heavy traffic. The only development since then is that Planning gave permission for a considerable expansion of the storage tanks!.Any sale that goes through should be conditional on following the expert advice and relocating the propane plant to a more remote area.
OMG! So Foster’s will deliver the same poor service they do at West Bay Republix?
Who pissed you off at Republix? I go there at least 3 x a week. It don’t find anything wrong except it needs to be enlarged for more variety and I understand Fosters is working on that now.
05 @ 6:49 pm – Obviously you haven’t eaten the over-peppered food or the over-sweet porridges on the “deli”. …oh, and the flies? Not to speak of the over-chilled melons which turn to mush after they get into normal refrigerator temp and freezer-burnt avocadoes which turn black once cut; over-chilled, wilted cilantro and parsley… More?
That’s among the “whats” which piss me off. Why does there have to be a “who”?
Grow your own
Has OfReg reviewed the ownership of Clean Gas? Considered any potential conflicts?
https://cnsbusiness.com/2016/06/new-propane-company-includes-minister-among-investors/
Who owns Clean Gas?
Good question