OMV Sells Turkish Retail Business


Vitol Group acquired OMV Petrol Ofisis lubricants and fuels distribution business in Turkey, including a finished lubes blending plant, for 1.4 billion (U.S. $1.5 billion), the companies said March 3.

The purchase is expected to be finalized in September, subject to conditions and relevant regulatory approvals. OMV Petrol Ofisi, a subsidiary of Austrian energy giant OMV, is the leading domestic lubricant marketer in Turkey with 114,000 tons of lubricants sold in 2016, the company told a reporter.

OMV Petrol Ofisi operates a 140,000 metric tons per year blending plant in Derince, Kocaeli province, which produces engine oils, industrial oils, hydraulic break fluids, greases, diesel engine oil additives and antifreeze. The company held a 25 percent share of the 420,000 tons sold in the Turkish lubricant market last year, according to Petder, a Turkish oil industry association.

In addition, the company has the largest fuel retail network in the country, with over 1,700 stations, and is a leading fuels supplier to commercial and industrial customers in Turkey, with 10 fuel terminals, two liquefied petroleum gas terminals, 28 airport supply units and over 737,000 tons in fuel storage capacity.

OMV said its Turkish assets were a burden to its broader operations in the region and will represent an impairment loss of about 186 million in its fourth-quarter financial account, in addition to 148 million in losses recorded at the end of December, when it reclassified the asset as held for sale. The decision to sell the company was the right and necessary step in the course of implementing our corporate strategy, said Rainer Seele, the companys chief executive officer, in a news release.

OMV cited the devaluation of Turkeys lira as a particular sore spot, saying that by September the currencys fall against the euro will have cost the company an estimated 1.1 billion since OMV acquired Petrol Ofisi in 2010.

Vitol said that Petrol Ofisi holds a strong position in the countrys growing market. It is a market leading brand, and we are committed to maintaining this excellent track record and greatly look forward to working with the companys team to capitalize on Turkeys strong economic performance and growing demand for energy products, Ian Taylor, president and CEO of Vitol, said in a news release.

Vitol is a Switzerland-based commodities firm, and its operations in Turkey are led through subsidiary VIP Turkey Enerji AS.

OMV Petrol Ofisi filling plant in Turkey

Photo courtesy OMV

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