Olerex heats up competition with Statoil, Neste after purchase of Lukoil assets in Estonia
Following the purchase of Lukoil assets in Estonia, fuel retailer Olerex has intensified the competition for a clear market leadership in the fuel distribution industry in Estonia where three players will have relatively similar market shares in terms of volumes sold, according to an early June report published by Baltic Business News.
Olerex informed this week that with the purchase of 37 service stations it will have a total of 80 fuel stations in Estonia which is the biggest number and makes it the biggest retail network. Council member Antti Moppel had stressed the emphasis on service and locations as key reasons for the purchase for an undisclosed amount, according to press reports.
The chief of Neste Festi, Ivar Kohv, quoted by Baltic Business News, said that the claims of market leadership following the purchase are “obviously exaggerated” as it is sales volume that matters and not the number of stations, Baltic Business News reported.
Kohv said that including wholesale Neste is by far the largest but in retail the leadership will still belong to Statoil with a market share of nearly 27% while Neste and Olerex will have a similar 23% share of all fuel retail.
Separately, Interfax Ukraine news agency stressed how Lukoil is exiting the region as it has already sold fuel stations in the Czech Republic, Hungary and Slovakia during 2014.
Both Olerex and Lukoil confirmed the transaction earlier this week.
