IMPERIAL TO SELL MORE STATIONS

Feb. 12, 1990

Imperial Oil Ltd. has agreed to sell 27 more service stations in Atlantic Canada to gain approval of a $4.9 billion acquisition of Texaco Canada Inc. The action is in response to a ruling late in January by the quasijudicial Competition Tribunal, which said Imperial had not done enough to ensure market competition after the acquisition. Imperial also will give stronger supply guarantees to independent retailers in Ontario and Quebec.

Imperial Oil Ltd. has agreed to sell 27 more service stations in Atlantic Canada to gain approval of a $4.9 billion acquisition of Texaco Canada Inc.

The action is in response to a ruling late in January by the quasijudicial Competition Tribunal, which said Imperial had not done enough to ensure market competition after the acquisition. Imperial also will give stronger supply guarantees to independent retailers in Ontario and Quebec.

It was the second time the tribunal had rejected merger proposals worked out between Imperial and the federal Bureau of Competition Policy. The bureau negotiates deals, but the tribunal has the final word on approval.

Earlier, Imperial agreed to sell more than 600 Texaco service stations across Canada, including 200 in Atlantic Canada, as well as a refinery and other assets. Upstream aspects of the merger have been approved, and Texaco operations are being integrated with Imperial.

Howard Wetston, director of the competition bureau, said the new Imperial proposal will enhance efficiency of the merger and increase competition throughout Canada. Wetston and Imperial said they are confident the changes will satisfy the concerns of the Competition Tribunal.