FTC Closes Investigation of Sunoco's Proposed Acquisition of Coastal Eagle Point Oil Company

Unanimous Vote Allows Sunoco to Buy Philadelphia-Area Eagle Point Refinery

For Release

By a 5-0 vote, the Federal Trade Commission today closed its investigation of Sunoco, Inc.’s (Sunoco) proposed acquisition of the El Paso Corporation’s Coastal Eagle Point Oil Company (Coastal). As part of its acquisition of Coastal, Sunoco, which owns three refineries in the greater Philadelphia area, will acquire the Eagle Point petroleum refinery.

As part of a continuing effort to provide transparency to its decision-making process, the Commission provided a brief statement outlining its decision to close the investigation. The statement, which is available on the FTC’s Web site as a link to this press release, discussed its review of the evidence in two potential markets: 1) the price of reformulated gasoline (RFG) in the Philadelphia area; and 2) the price of conventional gasoline into the Laurel Corridor, also in Pennsylvania.

According to the statement, the FTC’s investigation revealed that Philadelphia has, and will continue to have, access to several sources of RFG. Similarly, the Commission concluded that shipments of conventional gasoline into the Laurel Corridor via the Colonial Pipeline would render any attempts by Philadelphia-area refiners to increase prices not profitable or sustainable. In addition, potential efficiencies associated with the transaction, particularly those related to refinery synergies and optimization, should contribute significantly to ensuring the continued viability of the Eagle Point refinery in light of investments needed to satisfy regulatory requirements for cleaner-burning fuels.

The Commission vote to close the investigation and issue the public statement was 5-0.

The FTC’s Bureau of Competition seeks to prevent business practices that restrain competition. The Bureau carries out its mission by investigating alleged law violations and, when appropriate, recommending that the Commission take formal enforcement action. To notify the Bureau concerning particular business practices, call or write the Office of Policy and Evaluation, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington, DC 20580, Electronic Mail: antitrust@ftc.gov; Telephone (202) 326-3300. For more information on the laws that the Bureau enforces, the Commission has published “Promoting Competition, Protecting Consumers: A Plain English Guide to Antitrust Laws,” which can be accessed at http://www.ftc.gov/bc/compguide/index.htm.

(FTC File No: 031-0139)

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