Essar Group Acquires SGN Retail, Expands UK Network with 118 Petrol Sites
Essar Group's Strategic Expansion in the UK Fuel Retail Market
Acquisition Details and Growth Plans
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.
About Essar Energy Transition Retail
EET Retail is part of Essar Energy Transition Fuels, which operates the 200,000-barrel-per-day Stanlow refinery in the United Kingdom.
Leadership Perspective
"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.
Financial Aspects of the Deal
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.
Funding and Banking Partners
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)
Reporting and Editorial Credits
(Reporting by Nidhi Verma; Editing by Christian Schmollinger)
