HARRISBURG — The commonwealth of Pennsylvania is suing three energy companies to stop a merger the state alleges would create an illegal monopoly of the gasoline shipment industry in Pennsylvania.
The commonwealth of Pennsylvania filed a lawsuit Dec. 28 in U.S. District Court for the Middle District of Pennsylvania against Arclight Energy Partners Fund VI LP, Gulf Oil LP and Cumberland Farms Inc., alleging violation of Section 7 of the Clayton Act and Pennsylvania common law.
According to the complaint, Pennsylvania is challenging the detrimental merger of two of the largest providers of gasoline terminating services and distillates terminating services in the commonwealth. The suit states ArcLight owns and operates 12 refined petroleum products terminal facilities, totaling 9 million barrels of storage capacity through its Penn Products Terminals Unit in Pennsylvania.
According to a purchase and sale agreement dated May 15, 2015, ArcLight proposes to purchase 100 percent of the partnership interests in Gulf from Cumberland Farms. The proposed acquisition involves gasoline terminals used for the storing and transportation of fuel shipments primarily in Altoona, Harrisburg and Scranton. The plaintiff argues the acquisition would result in a monopoly of the market and that entry into the relevant markets would not be timely or sufficient to prevent or defeat the anti-competitive effects of such an acquisition.
The commonwealth of Pennsylvania seeks that the court preliminarily and permanently enjoin ArcLight from acquiring Gulf or from combining its own and Gulf’s assets and operations, plus reasonable costs and attorney fees. It is represented by Bruce R. Beemer, first deputy attorney general, Tracy W. Wertz, chief deputy attorney general of the antitrust section, Joseph S. Betsko, senior deputy attorney general, and Norman W. Marden, deputy attorney general, all in Harrisburg.
U.S. District Court for the Middle District of Pennsylvania Case number 1:15-cv-02493-CCC
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