Petrolina (Holdings) Public Limited (PHL) has announced the completion of a €48.6 million deal to acquire ExxonMobil Cyprus.
According to the announcement, this includes the company’s 68 Esso-branded service stations, marking a significant expansion of its operations in the Cypriot market.
On November 27, 2024, PHL confirmed that MED ENERGYWISE LTD, a wholly owned subsidiary, signed an agreement to acquire 100 per cent of ExxonMobil Cyprus Limited (EMCL), a subsidiary of Exxon Mobil Corporation operating locally since 1955.
EMCL supplies and distributes Synergy fuels through its network of Esso-branded service stations.
In 2023, EMCL reported a turnover of €272.4 million and a net profit of €2.7 million, compared to €296.7 million and €5.4 million, respectively, in 2022.
PHL said the acquisition aligns with its strategy to strengthen its petroleum products marketing business in Cyprus.
The acquisition agreement is part of “the further development of the Petrolina Group’s existing petroleum products marketing business in the Cyprus market“, the company stated.
The €48.6 million purchase price will be financed through a bank loan, with 10 per cent (€4.8 million) already paid as a cash advance.
The remaining amount will be settled upon completion, subject to the fulfilment of relevant conditions, including regulatory approval from the competition commission.
The financial evaluation of the acquisition was conducted by an independent expert, based on EMCL’s audited financial statements as of December 31, 2023, historical data, and future growth prospects.
PHL expects the acquisition to create economies of scale and operational synergies, enhancing the group’s overall performance.
The acquisition agreement is “expected to have a positive impact on Petrolina Group’s prospects and results due to the economies of scale and synergies that may be created based on PHL’s long experience in the petroleum products sector”, the company added.
The transaction made ‘on a purely commercial basis,’ complies with Cyprus Securities and Stock Exchange Law.
The company emphasised that no ‘designated person,’ as defined under the law, is involved in the transaction.
Finally, the announcement mentioned that legal advice for the acquisition was provided by Harris Kyriakides.
