The Indian Essar Group has acquired the British fuel station operator SGN Retail, thereby expanding its network by 118 sites. The company announced on Monday that it aims to grow its retail fuel network to 800 locations by 2031.
This acquisition will result in Essar Energy Transition Retail (EET Retail) managing 235 gas stations. EET Retail is part of Essar Energy Transition Fuels, which operates the Stanlow refinery in the UK with a capacity of 200,000 barrels per day.
Arvan Ruia, CEO of EET Retail, stated that this deal accelerates the implementation of the plan to create a nationwide, vertically integrated platform of 800 sites, which will be supplied directly from refineries and provide competitive fuel prices for drivers in the UK.
According to two sources familiar with the deal, its value is estimated at between 400 and 450 million pounds sterling (equivalent to $540.04 to $607.55 million USD). An Essar representative declined to comment on the deal's value.
EET Retail specified that the acquisition will be financed through cash as well as a senior debt facility of 250 million pounds sterling provided by banks such as First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Royal Bank of Canada, and SMBC Bank International.