According to the ACCC’s chairman Graeme Samuel, the proposed acquisition would reduce competition in the Tasmanian market, contravening section 50 of the Trade Practices Act 1974.

Section 50 prohibits mergers or acquisitions that would have the effect or be likely to have the effect of substantially lessening competition in a substantial market.

“The proposed acquisition involves the acquisition by the market leader of the next most significant LPG supplier in Tasmania and will lead to a substantial increase in Origin's market share, leading to it having in excess of 90% of sales of LPG in Tasmania," Samuel said.

"This movement to such a large market share together with the significant barriers to entry is, in the ACCC's view, likely to lead to a substantial lessening of competition in contravention of the Act."

Origin is the largest player in the Tasmanian LPG market, with LPG port loading and storage facilities in Hobart and Devonport.