The Federal Trade Commission closed its nine-month investigation into Tesoro Corporation’s acquisition of BP p.l.c.’s southern California marketing and refining assets, in particular BP’s Carson Refinery near Los Angeles. In a statement issued today, the Commission said the proposed acquisition is not likely to lessen competition substantially in violation of Section 7 of the Clayton Act or Section 5 of the FTC Act.
According to the statement, demand for California-grade gasoline has declined over the last decade and is projected to continue to do so. Additionally, seven major refiners supply the West Coast, and that number will not change as a result of the deal.
“Although the specific facts associated with this transaction do not warrant Commission action at this time, the Commission is fully committed to using all the tools at its disposal to protect competition and consumers in this important economic sector,” the statement states.
The Commission vote to close the investigation was 3-0, with Commissioner Joshua D. Wright recused.
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