United States regulators are turning their heads targeting oil and gas Mergers as the fuel prices continue to surge. The escalating oil prices have emerged as a liability for the President Joe Biden. The Federal Trade Commission is now assessing new methods of cracking down on Mergers, and acquisitions. The aim is to investigate gas station franchise networks for their share in driving the gas prices.
FTC Chair Lina khan is managing, and guiding staff in identifying new legal theories. These will be fully capable of targeting, and challenges retail fuel Mergers. Recognizing the possible collusion implemented by national chains or fuel stations that have pushed prices higher is crucial.The FTC has a strategic plan to deploy “prior approval” requirements with a view of dissuading the oil and gas companies from merging. This will be effective in retail gas market as well that are based on illegal foundations.
According to Khan, the recent decision associated with imposing requirements comes from significant consolidation in the industry. however, not jus that, the decision is prompted by the increasing oil prices that have become a political liability.