New Zealand: Ampol to trade petrol brands through Gull sale
After announcing the sale of the retail business to Allegro Funds the Australian company aims to take control of the Z Energy firm.
Ampol has announced a deal to sell Gull, its New Zealand-based petrol station business, to Allegro Funds for approximately USD475 million. In the meantime, the company is aiming to get the country’s competition authorities' support before next week’s shareholder vote that could mean taking control of the Z Energy company for roughly USD1.87 billion.
As an article by local news site businessnewsaustralia.com reported, Ampol is taking steps to trade one petrol brand for another through the Gull sale. However, if the target’s shareholders vote against the takeover on the 25th of March, Gull will remain in Ampol hands.
The Australian Group has taken up this measure to both shore up cash and ensure any potential competition law issues are fully addressed as part of its application to the New Zealand Commerce Commission to acquire Z Energy. While the NZCC decision is still pending, the commision and the New Zealand Overseas Investment Office would also need to approve Allegro as the purchaser of Gull, as well as the relevant transaction documents.
"Ampol’s strong financial results and record fuel sales reflect the ability of our people to thrive under challenging conditions and demonstrates how our business and earnings can respond to the market recovery. As we look ahead, we have a clear strategy to maximise the value of our existing businesses during the energy transition and to diversify and grow our international earnings through the Z Energy acquisition while we prepare for a low carbon future," said Matt Halliday, Managing Director and CEO of Ampol, back in February.
The deal involves Ampol’s commitment for a five-year fuel supply agreement with Gull, requested by Allegro and which is subject to annual price reviews and termination rights. If the deal comes through, it is expected that the divestment will take place in the first half of 2022.
