Aloha Petroleum Ltd. said the Federal Trade Commission no longer opposes its purchase of 18 Mahalo gas stations on O'ahu, after the company agreed to share a fuel import terminal with a competitor.

Aloha announced its planned purchase in February. But the FTC sued to block the $18 million sale of the stations and a half interest in the terminal from Trustreet Properties Inc. in July, arguing that the deal would likely lead to higher gas prices for consumers statewide.

In part, the FTC argued that Aloha's control of the import terminal would reduce the number of companies that can import gas, and, as a result, the incentive to keep prices lower.

Aloha and Trustreet share ownership and use of the terminal that can compete with a terminal owned by Royal Dutch Shell Plc and the two refineries.

Aloha and Trustreet argued in July that Trustreet was never a serious candidate to import fuel after poor results trying to do so once in partnership with Aloha.

A trial in U.S. District Court in Hawai'i was scheduled but postponed last month to allow for settlement negotiations. Aloha agreed to give local Union 76 station owner Mid Pac Petroleum LLC use of the terminal for 20 years, and the FTC withdrew its complaint, Aloha said yesterday.

Terms of the agreement with Mid Pac were not disclosed. Aloha said it has not determined when its purchase of the Mahalo stations will be completed. A new purchase price is not being disclosed.

With the Mahalo acquisition, Aloha would become the second biggest gas retailer on O'ahu, behind Chevron, in terms of market share.

"This acquisition is a big win for consumers because Aloha Petroleum can now offer its value and products at more locations across O'ahu," Aloha President Bob Maynard said in a statement.

Maynard said Aloha has consistently offered lower gas prices than bigger competitors since 1977. The company operates about 60 stations on O'ahu and the Big Island associated with its Island Mini-Mart convenience stores, as well as 7-Eleven, Fastop and other convenience store brands.

Mid Pac, a subsidiary of Singapore-based investment holding company K1 Ventures Ltd., was established last year with the purchase of 34 local Union 76 gasoline stations, two Neighbor Island terminals and rights to the Union 76 brand in Hawai'i from ConocoPhillips for $38.2 million.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.