Ireland's DCC to buy ExxonMobil's Norwegian retail petrol station network for $293 mn
07 February 2017
Irish diversified investments group DCC plc today struck a deal to buy retail petrol station network of ExxonMobil's Norwegian unit, Esso Norge AS, for 2.43 billion Norwegian crowns ($293 million).
The network is the third-largest in Norway with around 20 per cent of retail volumes.
Esso's retail petrol station network in Norway comprises a national network of 142 company-operated sites and has contracts to supply 108 Esso-branded dealer owned stations.
Esso Retail Norway sells 600 million litres of fuel annually. The majority of the stations are in the more populous south of the country and, of the 142 company-operated sites, 110 are held freehold, with 32 being leasehold.
As part of the transaction DCC Energy will enter into long term brand and supply agreements with Esso Norge AS.
Esso Retail Norway will be integrated into DCC Energy's existing retail IT and operating infrastructure.
This infrastructure was developed during 2015 to enable DCC Energy's integration of the Esso France retail business and has operated the business successfully since completion.
DCC Energy said that the acquisition is in line with this strategy and ambition to build a substantial European retail petrol station business, leveraging its low-cost operating infrastructure and, where required, partnering with leading retail operators to manage a convenience retail offering.
Post closing, DCC Energy will operate 1,000 retail petrol stations across Europe and supply 2,000 dealer-owned stations.
Tommy Breen, CEO of DCC said, "The acquisition of Esso Retail Norway is another material step for DCC in building its retail petrol station business in Europe. From a modest position three years ago, DCC Energy will, following completion, operate over 1,000 retail petrol stations and is ambitious to continue this development."