European fuel retailer Delek bids for BP's French retail fuels unit

BP today said that it had received an offer from one of the largest fuel retailers in Europe, Delek Europe B.V, and a subsidiary of the Delek Group Ltd, to buy its French retail fuels and convenience business including selected fuel terminal.

The proposed purchase price is €180million (approximately $251 million), in cash, subject to working capital adjustments, BP said.

On receiving Delek's offer to purchase BP's 416 petrol stations in France, the UK-based petroleum company, has entered into a period of exclusivity with Delek Europe and also commenced discussions with works councils.

The sale would also include interests or ownership in three fuel distribution depots and it is expected to include a long-term agreement for acceptance of fuel cards. The proposed transaction is currently expected to be completed in the second half of this year.

A final transaction will be subject to works councils and regulatory approvals, BP said, as the the retail business staff  would be transfered to the new owner.

The proposed agreement calls for BP's branding to remain on the forecourts for a number of years under a licensing agreement.