The competition regulator has waved through the $1.2bn sale of the Shahin family’s OTR business

The Shahin family’s $1.2bn sale of its OTR convenience and petrol empire to Viva Energy has been given the green light by the competition regulator.

Sam Shahin, Viva Energy managing director Scott Wyatt, Yasser Shahin and Charlie Shahin. Picture: Supplied.

The Shahin family’s $1.2bn sale of its OTR convenience and petrol empire to Viva Energy has been given the green light by the competition regulator.

The Australian Competition and Consumer Commission has signed off on the deal, with Viva agreeing to sell 25 Coles Express sites in SA as part of the transaction.

ASX-listed Viva bought the OTR network with a view to rolling out its successful convenience model across its wider network of Coles Express, Shell and Liberty-branded fuel and convenience outlets.

The OTR network comprises more than 170 sites predominantly in South Australia, while Viva is looking to grow the combined OTR and Liberty network to more than 1000 sites with another 90 OTR sites envisaged within three years.

The OTR empire was founded by the family patriarch Fred Shahin who bought a service station in Woodville Park in 1984, with sons Yasser, Sam and Charlie joining the business and building it into a multi-billion dollar endeavour.

The family also owns and operates motorsport park The Bend as well as Peregrine Corporation which has significant business and property interests.

Yasser Shahin will stay on with the OTR business to oversee the roll out of the OTR model, and the Shahin family will become a significant shareholder in Viva as a result of the shares plus cash deal.

ACCC Commissioner Stephen Ridgeway said after factoring in the divestitures, the regulator did not consider the proposed acquisition would result in a substantial lessening of competition.

“The ACCC considers that the undertaking given by Viva Energy will create a viable,effective, stand-alone, independent and long-term competitor,” Mr Ridgeway said.

In announcing the deal in April, Viva said adopting the OTR model, which integrates food outlets such as Subway and Guzman y Gomez and convenience store shopping into fuel outlets, meant they would get a rapid uplift in earnings from non-fuel retail.

Viva said developing its own model would have taken “years’’.

“The introduction of OTR’s superior convenience offering, including quick serve restaurants, will help revolutionise the diversity and attraction of our retail offering,” Viva chief executive Scott Wyatt said at the time.

“As our stores increasingly become retail destinations, we expect convenience earnings will grow and reduce our dependency on traditional fuels.

“OTR outlets offer an attractive and welcoming store environment, supporting increased dwell time, which is likely to be a key factor in successfully introducing electric vehicle recharging facilities over time.”

The deal is expected to close in the first half of 2024 and is still subject to Foreign Investment Review Board approval.

Viva shares closed 6.1 per cent higher at $3.32 on Thursday.