Puma Energy signs deal to acquire BP's fuel marketing businesses in Africa

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17 November 2010, Oil, LPG

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As part of the deal, Puma Energy is entering into a long-term deal with Castrol for the marketing of lubricants in the region.

Puma Energy's joint venture partner, Sonangol (Sociedade de Combustiveis de Angola), Angola's state-owned petroleum company, will take a 10% stake in the acquired businesses.

Puma Energy has agreed to pay a total of $296 million in cash, subject to certain post-completion price adjustments, for all of BP's interests in BP Namibia (100 per cent share), BP Botswana (100 per cent), BP Zambia (75 per cent), BP Malawi (50 per cent), and BP Tanzania (50 per cent). The sale in each country is subject to different regulatory approvals. It is expected that sale of BP Botswana will complete in 2010 with completion in the other countries to take place in 2011.

The newly acquired businesses will add 188 fuel service stations, 11 fuel storage terminals, a range of mining key accounts, and an aviation fuel business with a presence at 22 airports to the Puma Energy portfolio, and will add some 402 new colleagues to the global business. Over a short period of time, the BP brand will be replaced by the Puma Energy brand in these businesses.

Commenting on the acquisition, Puma Energy's chairman Pierre Eladari said, "this deal marks a significant milestone in the growth of our business, positioning Puma Energy as one of the largest independent downstream companies operating and investing in the region today."

"Among the recent divestments by the majors in this region, we targeted the BP portfolio for the outstanding quality of its staff and assets, its key account customer base, and for the strategic fit with our existing businesses in Mozambique, the Democratic Republic of Congo and Angola. As such, I am very pleased to have been able to conclude this deal with BP alongside our partners, Sonangol.

"With full coverage of the SADC region, strong market share in each country, and over 450,000m3 of strategic fuel storage capacity under our operatorship, we now offer our customers and partners unrivalled security of supply and access to the regional marketplace. We believe this, together with our strategic alliance with Castrol, will be a strong driver of growth in our business over the medium-term."

Source: Datamonitor

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