The U.S. Federal Trade Commission ordered Valvoline Inc. to divest 45 quick-lube shops as a condition for clearing its proposed U.S.$625 million acquisition of roughly 200 Oil Changers outlets from Greenbriar Equity Fund V, L.P. The agency said the deal, without divestitures, would harm competition in 25 local markets across eight states, exposing consumers to higher prices and reduced service quality.
The Nov. 14 ruling comes amid heightened antitrust scrutiny of retail auto-service consolidations, with regulators increasingly focused on preserving local competition in maintenance and repair markets. Quick-lube chains have expanded rapidly through acquisitions in recent years, prompting concerns about market concentration and consumer costs in regions where rivals operate in close proximity.
According to the FTC, the affected markets span California, Idaho, Illinois, Indiana, Kentucky, Michigan, Washington and Wisconsin – areas where Valvoline and Oil Changers directly compete.
Under the consent agreement, the 45 outlets will be sold to Main Street Auto LLC, and Valvoline must maintain the assets’ competitiveness until the transfer is complete. The order also bars Valvoline from reacquiring the divested shops and requires advance notice before acquiring any facility within three to five miles of a divested location.
“This action ensures that quick-lube services remain affordable and accessible for U.S. motorists,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “The divestiture order preserves competition critical to maintaining convenient oil-change options for millions of U.S. consumers.”
The FTC added that the agreement will undergo a 30-day public comment period before the Commission decides whether to finalize the order. The agency found that the original transaction, intended to expand Valvoline’s national quick-lube network, would substantially lessen competition in several regions in violation of Section 7 of the Clayton Act and Section 5 of the FTC Act.