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

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.

(FTC File No: 031-0139)