Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Anticompetitive charges regarding Tesoro’s acquisition of Chevron assets settled, (Aug 7, 2013)
Organizations Mentioned:Federal Trade Commission | Tesoro Corp.
By Jody Coultas, J.D.
The Federal Trade Commission approved a final order settling charges that oil refiner Tesoro Corporation’s acquisition of petroleum-related assets of Chevron Corporation would have reduced competition and violated U.S. antitrust laws.
Tesoro Corporation is a Texas-based refiner and marketer of petroleum products that owns several petroleum products terminals, including a terminal in Boise that receives light petroleum from the Northwest Products Pipeline, a 760-mile long interstate pipeline presently owned by Chevron. On December 6, 2012, Tesoro agreed to acquire the pipeline system and its adjacent terminals from Chevron, including a terminal located in Boise.
After learning of the proposed acquisition, the FTC filed a complaint against Tesoro and Chevron for violation of Section 5 of the Federal Trade Commission Act, Section 7 of the Clayton Act, and Section 5 of the Federal Trade Commission Act
The order requires Tesoro to sell the terminal it currently owns in Boise, Idaho, to an FTC-approved buyer within six months. A separate order requires Tesoro to maintain assets to preserve the Tesoro’s Boise terminal as a viable, competitive, and ongoing business.
News: Antitrust