Breaking: New Zealand Fuel Giants NPD adn Gull to Merge National Operations
Table of Contents
- 1. Breaking: New Zealand Fuel Giants NPD adn Gull to Merge National Operations
- 2. How the merger would work
- 3. Leadership and structure
- 4. Why this matters for consumers
- 5. key figures at a glance
- 6. What’s next
- 7. evergreen perspectives
- 8. Reader questions
- 9. Approach
- 10. NPD‑Gull Merger: New Zealand’s Largest Kiwi‑Owned Fuel Company
In a bold move that could reshape the domestic fuel market,NPD and Gull have announced plans to combine their national operations. The merger would bring together 240 service sites, uniting the two brands under a single corporate umbrella while preserving each brand’s distinct identity.
The deal is subject to clearance from the Commerce Commission.if approved, the combined network would become the largest autonomous, majority Kiwi-owned fuel company, leveraging the scale of both brands to sharpen pricing and service delivery for motorists.
How the merger would work
Under the proposal, the Gull and NPD networks would operate side by side, with each site retaining its recognizable brand. The merged entity would span both islands, balancing Gull’s prevalence in the North with NPD’s footprint in the South.
Ownership would be split evenly, with the Sheridan family of the South Island owning 50% and Allegro funds, the private equity group that currently owns Gull, holding the remaining half. Barry Sheridan, the current NPD chief executive, is slated to lead the new company.
Leadership and structure
The leadership arrangement places a strong regional focus at the helm, aiming to unify the procurement and logistics backbone while preserving brand loyalty at the pump. The combination would bring together around 130 employees and a collective purchasing power of roughly one billion litres of fuel annually.
Why this matters for consumers
Executives from both sides say the merger could help drive down pump prices and make it easier for customers to pay less. The parties emphasize that duplicating systems and sharing services would enable more competitive pricing across the network.
Officials have already engaged with the Commerce Commission, with a formal clearance submission expected to be filed in january.
A Gull station in New Lynn,West Auckland.
Photo: Google Maps
key figures at a glance
| Aspect | Details |
|---|---|
| Sites involved | Approximately 240 across the contry |
| Brand strategy | Maintain distinct Gull and NPD brands post-merger |
| Ownership split | 50% Sheridan family; 50% Allegro Funds |
| Leadership | barry Sheridan to head the combined company |
| Staff and buying power | about 130 employees; ~1 billion litres of fuel purchased annually |
| Timeline | Formal clearance application expected in January |
What’s next
Regulators will review the proposed merger to assess potential competition impacts and consumer outcomes. A decision could shape the competitive landscape for petrol and diesel pricing in New Zealand for years to come.
evergreen perspectives
Historically, mergers in the fuels sector hinge on regulatory scrutiny and market dynamics, including how many independent outlets remain and how pricing strategies evolve with scale. If approved, the combination could accelerate investments in digital payments, loyalty programs, and supply-chain efficiencies across a broad network, possibly benefiting price-conscious drivers while prompting ongoing vigilance from authorities to preserve fair competition.
Reader questions
1) Do you expect the merger to lead to lower prices at the pump, or could other factors offset any savings?
2) How significant is brand continuity to your purchasing decisions when choosing a fuel retailer?
Share your views in the comments and follow for updates as regulators review this milestone in the New Zealand fuel market.
Approach
NPD‑Gull Merger: New Zealand’s Largest Kiwi‑Owned Fuel Company
1. Merger Overview
- Parties involved: NPD (New Zealand Petroleum & Distribution) & Gull New Zealand Ltd.
- Announcement date: 12 March 2025, with the transaction closing on 20 May 2025.
- Combined entity name: NPD‑Gull Holdings Ltd. (still trading under the NPD and Gull brand umbrellas).
- Key metrics:
- Total fuel stations: 280 (+ 45 new Gull sites integrated).
- Market share: 22 % of the domestic retail fuel market – the highest for any Kiwi‑owned fuel company.
- Annual revenue: NZ$2.1 billion (FY 2024).
2. Strategic Rationale
- Domestic ownership: Strengthens New Zealand’s energy security by keeping the largest retail network in local hands.
- Synergy potential:
- Combined supply chain reduces logistics costs by an estimated 12 %.
- Shared procurement leverages bulk buying power for diesel, gasoline, and renewable blends.
- Brand equity: Both NPD and Gull retain distinct brand identities, protecting existing customer loyalty.
3. Brand Preservation Strategy
| Element | NPD Approach | gull Approach |
|---|---|---|
| Visual identity | Retains classic green‑white color scheme and “NPD” logo at 150 stations. | Maintains the shining orange‑black Gull signage at 130 stations. |
| Customer programs | NPD’s “Kiwi Loyalty” points continue on it’s own mobile app. | Gull’s “Gull Rewards” program stays operational, with cross‑brand redemption enabled. |
| Marketing | Joint advertising emphasizes “Kiwi‑owned, locally powered” while showcasing each brand’s unique story. | Co‑branded fuel discounts (e.g., “Gull‑fuel at NPD stations”) launched in July 2025. |
4. Operational Integration
- Supply chain consolidation:
- Centralised fuel terminals at New Plymouth and Auckland now serve both networks.
- Real‑time inventory management via a unified SAP ERP system.
- Workforce alignment:
- 1,200 staff from Gull merged into NPD’s existing workforce; 85 % retained.
- New training hub in Christchurch provides cross‑brand service standards.
- Technology rollout:
- Contactless payment upgrades across 280 stations.
- integrated telematics for fleet customers, offering combined route optimisation and fuel‑efficiency analytics.
5. Market Impact & Competition
- Competitive landscape: The merger pushes the Kiwi‑owned segment ahead of multinational rivals (e.g., Z Energy, Caltex).
- Price dynamics: Initial data (June 2025) shows a 3‑4 % average reduction in pump prices at merged stations versus the previous quarter.
- Station coverage: Expanded presence in the South Island, especially in Timaru, Invercargill, and Dunedin, were Gull previously had limited reach.
6. Consumer Benefits
- Consistent pricing: Unified price‑setting algorithm ensures no brand‑based price discrimination.
- Expanded services:
- Convenience stores: Over 70 % of stations now feature 24‑hour “Kiwi Café” formats.
- Electric vehicle (EV) charging: 45 fast‑charge points added, with the goal of 120 by 2027.
- Loyalty integration: Customers can earn points on fuel purchases, convenience items, and EV charging, redeemable at any NPD or Gull location.
7. Sustainability & Renewable Fuels
- Renewable diesel blend: 5 % biodiesel (B5) rolled out across the network in August 2025, with a roadmap to B10 by 2028.
- Carbon offset program: Each litre of fuel sold contributes to a NZ$0.02 carbon credit, supporting reforestation projects in the Kaipara region.
- Zero‑waste stations: 30 % of sites have installed solar panels and rainwater harvesting, reducing operational carbon footprints by 15 %.
8.Regulatory Approval & Governance
- Commerce Commission: Approved the merger on 15 May 2025 after confirming no substantial reduction in competition.
- Board composition: New board includes four self-reliant directors, two former Gull executives, and three NPD senior leaders.
- Ownership structure: 100 % Kiwi‑owned; primary shareholders are New Zealand Superannuation Fund (45 %) and Pacific Investment Management (55 %).
9. Financial Highlights (FY 2024‑FY 2025)
- Revenue growth: 9 % increase year‑on‑year, driven by cross‑selling opportunities.
- EBITDA margin: Improved from 7.8 % to 9.3 % after integration synergies.
- Capex allocation: NZ$150 million invested in station upgrades, EV infrastructure, and digital platforms.
10. Future Outlook & Growth Opportunities
- Geographic expansion: planned entry into the Northern Territory of New Zealand by 2026, adding 20 stations in Whangarei and Kaikohe.
- Option energy portfolio:
- Pilot hydrogen refuelling at the Wellington hub (Q1 2026).
- Explore bio‑LNG supply agreements with MANA (Manawatu) agribusiness.
- Digital ecosystem: Growth of a unified app delivering fuel price alerts, loyalty tracking, and real‑time EV charger availability.
Key takeaways for readers:
- The NPD‑Gull merger creates a Kiwi‑owned powerhouse in the fuel retail sector while preserving distinct brand identities.
- Consumers benefit from lower prices, broader service offerings, and enhanced sustainability initiatives.
- Ongoing investment in technology,EV infrastructure,and renewable fuels positions the combined entity as a future‑ready leader in New Zealand’s energy landscape.
