Italy: TotalErg preparing sale of large gas station network
One of Italy's largest fuel retailing networks, known as TotalErg, could be up for sale, according to Reuters.
TotalErg, with a network of 2,600 gas stations and 11% of market share, is a joint venture formed by French oil giant Total and Italian renewable energy group Erg.
The deal to acquire the TotalErg portfolio of fuel stations could be worth up to 700 million Euros, according to sources cited by Reuters.
Profit margins in Italy´s fuel retailing business are currently very low due to the great number of sites the country has: Around 21,000 gas stations serve Italy´s 60 million citizens.
Formed in 2010 through the merger of Total Italia and Erg Petroli, the joint venture is controlled by Erg with a 51 percent stake while Total holds the remaining 49 percent.
