The Ampol Ltd (ASX: ALD) share price is in the green today after the company cleared a hurdle to acquire Z Energy Limited.
Ampol shares are currently trading at $29.56, a 3.18% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.41%.
The Ampol share price is also outperforming some of its ASX energy sector peers. Santos Ltd (ASX: STO) is down 0.2% and Woodside Petroleum Limited (ASX: WPL) is descending 1.58%.
The S&P/ASX 200 Energy (ASX: XEJ) index is 0.22% in the red today.
Key milestone achieved
Ampol has received clearance from the New Zealand Commerce Commission (NZCC) to acquire Z Energy Ltd (ASX: ZEL).
The approval is subject to Ampol divesting its New Zealand business, Gull. Gull owns 112 service stations, six retail properties, and a 91ML fuel import terminal at Mount Maunganui.
As Motley Fool Australia reported Monday, the petroleum company has entered a binding agreement to offload Gull for net cash proceeds of about NZ$509 million. The proceeds of this sale will help fund the Z Energy acquisition.
Commenting on the news that appears to be boosting the Ampol share price today, managing director and CEO Matt Halliday said:
We welcome the decision by the NZCC, which recognises that our commitment to fully divest Gull addresses the potential competition law issues.
The NZCC decision is an important milestone towards the successful completion of the transaction to acquire Z Energy by the end of the first half of 2022.
The news was also welcomed by Z Energy chair Abby Foote, who said:
This announcement is an important step towards the successful completion of the Scheme of Arrangement with Ampol. We are pleased with the Commission's decision and look forward to presenting the transaction to Z shareholders at the Scheme meeting next week.
Ampol will need to complete the sale of Gull within nine months of acquiring Z Energy. This takeover is subject to a shareholder vote on 25 March, approval from the Overseas Investment Office, and court orders.
Ampol share price snapshot
The Ampol share price has slipped 0.9% this year to date but has surged 25% over the past 12 months.
In the past month, Ampol shares have dropped by almost 9% but are climbing more than 3% over the past week.
Ampol has a market capitalisation of about $6.96 billion based on its current share price.
