Essar buys UK petrol station operator SGN Retail, adds 118 sites

By Reuters News

NEW DELHI, Sept 14 (Reuters) - India's Essar Group has acquired UK petrol station operator SGN Retail, adding 118 sites as it seeks to expand its fuel retail network to 800 outlets by 2031, the company said on Monday.

The acquisition will take the number of petrol stations operated by Essar Energy Transition Retail (EET Retail) to 235, it said.

EET Retail is part of Essar Energy Transition Fuels, which operates the 200,000-barrel-per-day Stanlow refinery in the United Kingdom.

"This acquisition accelerates our plan to build a nationwide, vertically integrated platform of 800 sites, backed by direct refinery supply and delivering competitive prices at the pump for UK motorists," said Arvan Ruia, chief executive of EET Retail.

The deal is worth £400 million to £450 million ($540.04 million to $607.55 million), two sources with knowledge of the matter said, speaking on condition of anonymity.

An Essar spokesperson declined to comment on the deal value.

EET Retail said the acquisition would be funded through cash and a £250-million senior debt facility from banks including First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Royal Bank of Canada and SMBC Bank International.


($1 = 0.7407 pounds)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.