BP to Sell Fuels Business in Greece
BP has agreed today to sell its ground fuels marketing business in Greece to Hellenic Petroleum for 359m ($500m) subject to various adjustments at closing.
The deal is subject to certain conditions, including regulatory approvals, and is expected to be completed towards the end of the year with the sale of BP Hellas shares.
The sale covers the 1200 BP branded sites in the country, and the distribution network of fuel deliveries to the sites and wholesale customers.
BP will still have a significant presence in Greece as the automotive, industrial and marine lubricants businesses, BP Solar and Air BP will continue to operate as part of the BP Group.
Sotiris Christoyannis, BP Hellas Managing Director said: "This historic agreement brings new opportunities for the development of our dealers, our partners and our staff. Hellenic Petroleum is the most important group in the Greek oil market, and their investment strategy guarantees a successful future. It combines the strengths of two major companies in the energy arena so that an ambitious growth programme can be materialized for the benefit of the Greek customers.
Explaining the reason to divest the business, Mr Christoyannis said BP regularly reviews its portfolio and makes choices to optimise the resource allocation within its strategic and financial frameworks. In this instance it was decided that BP was no longer the natural owner of the fuels value chain business in Greece.
About BP in Greece
BP has been in Greece since 1951 and employs over 400 people. There are 1200 BP branded forecourt sites in Greece with the majority owned and operated by dealers.
About Hellenic Petroleum
Founded in 1998, Hellenic Petroleum is one of leading energy Groups in South East Europe, with activities spanning over 10 countries across the region and the energy value chain. In 2008, Group Adjusted Net Earnings amounted to 216m, on total revenues of 10bn. Its shares are listed on the Athens Exchange (ATHEX: ELPE), and it has a market capitalisation of about 2.2bn.
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