Tesoro Corp. and one of its subsidiaries agreed to sell a Boise, Ida., terminal so it can complete its planned acquisition of a Chevron Corp. regional products pipeline and terminal, the US Federal Trade Commission announced on June 17.
FTC said it raised antitrust concerns about the transaction shortly after Tesoro and Tesoro Logistics Operations LLC agreed on Dec. 6, 2012, to buy the Northwest Products Pipeline system and Chevron’s associated terminals, including the one in Boise, for $355 million. The 760-mile pipeline carries petroleum products from Salt Lake City to terminals in Idaho and Washington.
Its complaint alleged that the proposed transaction would give Tesoro control over most of Boise’s terminal, leading to substantially reduced local competition and higher terminal costs which would be passed on to consumers.
A proposed order settling the FTC’s charges requires Tesoro to sell the Boise terminal it currently owns to a buyer approved by the commission within 6 months of the order’s becoming final. Tesoro would be allowed to complete its acquisition of Chevron’s Northwest Products Pipeline and associated terminals immediately after the order is issued.
The proposed consent order also contains a separate order to maintain assets, which is designed to preserve the Tesoro’s Boise terminal as a viable, competitive, and ongoing business, FTC said. Comments on the proposed order will be accepted until July 19, it indicated.
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