Aloha will buy
Mahalo gas stations

The Federal Trade Commission
drops a lawsuit blocking the deal

Aloha Petroleum Ltd. said yesterday it will move forward with its acquisition of Trustreet Properties Inc.'s Mahalo retail gasoline stations and ownership stake in an Oahu gasoline terminal.

The announcement follows the Federal Trade Commission's withdrawal last week of a lawsuit blocking the proposed deal.

The deal will give Aloha full ownership of the Kalaeloa fuel terminal, which Aloha currently co-owns with Trustreet. The FTC had said Aloha's purchase of Trustreet's interest in the fuel terminal would eliminate one gasoline importer from an already small market of importers and refiners, potentially leading to higher gasoline prices.

Aloha said yesterday it will enter into a 20-year agreement that gives Mid Pac Petroleum LLC use of the fuel terminal. The pact with Mid Pac made the FTC's complaint moot, Aloha said.

Aloha said the deal's closing date has not been determined and that it would not disclose terms of the sale.

The company owns and operates approximately 60 gas stations on Oahu and the Big Island, while Mahalo operates 20 stations, though it was to cease operating two of the stations.

"This acquisition is a big win for consumers because Aloha Petroleum can now offer its value and products at more locations across Oahu," said Bob Maynard, Aloha's president.

"It also strengthens our position as a local company competing against the national and international petroleum companies operating in Hawaii."

Maynard said Aloha has offered competitive prices since its incorporation as a Hawaii company in 1977 and would continue to do so.

"Aloha has always been a highly efficient, pro-consumer force in Hawaii's petroleum industry," Maynard said. "We will continue to provide much needed leadership in offering consumers greater value at the pump."