Which of the following is correct about Caltex’s acquisition of Milemaker? 

Group of answer choices 

a, The acquisition is considered by the ACCC to substantially reduce competition because the barrier of entry is high for the petroleum industry. 

b, From a strategic point of view, Caltex’s acquisition of Milemaker provides diversification benefits. 

c, Cannibalization is a potential strategic concern in the proposed acquisition, because of the proximity between Milemaker petrol stations and existing Caltex petrol stations. 

d, The ACCC allowed the acquisition because the fuel price in Australia is capped by relevant legislation and therefore Caltex would not have the ability to raise the petrol price post-acquisition.

Answer rating: 100% (QA)

a The acquisition is conside... View the full answer