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Tatneft to fuel a deal with Neste
Posted on Monday, 08 July 2019 14:11
PJSC Tatneft is buying Neste’s Russian fuel retail business for an undisclosed sum by the end of 2019.

Upon closing, the 75 petrol stations and a St Petersburg-based terminal will continue to operate under their current brand name for the next five years.

As a result of the acquisition, the business will become part of a retail network already billed as one of the five largest in Russia.

Nail Maganov, general director of Tatneft, said the deal allows the company to enter a high priority region in North Western Russia and is part of its strategy to market around 50.0 per cent of its own produced fuels domestically.

Maganov added: “One of the key priorities in developing and operating Tatneft’s retail network is to minimise environmental impact.

“Neste is one of the leaders in this field in Russia, which would allow us to expand and promote the best practices in this area throughout our operation.”

The sale enables Neste to focus on developing its services and operations within Finland and the Baltic countries.

Headquartered in Espoo, the Finnish vendor produces, refines and markets oil products and provides engineering services across 14 countries.

For the quarter ended 31st March 2019, Neste posted revenue of EUR 3.77 billion, up from EUR 3.63 billion in the corresponding period of 2018.

The group also generated earnings, before interest, taxes, depreciation and amortisation within the same period of EUR 486.00 million (Q1 2018: EUR 518.00 million).

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 118 deals targeting gasoline station operators announced worldwide since the beginning of 2018.

The largest of these saw Clayton Dubilier & Rice, through acquisition vehicle CD&R Firefly Bidco, agree to buy UK-based LSF9 Robin Topco for GBP 1.20 billion in February last year.

Other companies targeted in this sector include Vivo Energy, Caltex Australia and Booster Fuels.

© Zephus Ltd