Arrow Energy’s acquisition of Bow Energy will go unchallenged by the Australian Competition and Consumer Commission.

 

"The ACCC formed the view that the proposed acquisition of Bow Energy would be unlikely to substantially lessen competition in the wholesale supply of gas to domestic users," ACCC chairman Rod Sims said.

 

As Bow Energy is currently not supplying gas to customers, the ACCC focused its assessment on the size of Bow's reserves and any likely effect on domestic prices from the acquisition of those reserves by Arrow.

 

The ACCC concluded that Arrow would be unlikely to be able to increase prices for wholesale gas supply to domestic users as a result of the proposed acquisition.

 

"The ACCC recognised the concerns amongst domestic gas users about the availability of long term contracts in the short to medium term due to the focus of producers on planned LNG developments at Gladstone. The ACCC also recognised the gas users' submissions that the proposed acquisition of Bow Energy would remove a potentially significant domestic supplier," Mr Sims said.