Delek Europe in process to purchase BP Retail & Convenience business in France

Delek Europe BV (hereinafter “Delek Europe”), a foreign subsidiary (held in concatenation 80% by Delek Petroleum Ltd and 20% by Delek The Israel Fuel Corporation Ltd.), has today submitted a binding offer to BP for the acquisition of its retail fuels and convenience business in France, including approximately 416 BP petrol stations throughout the country and its interests or ownership in 3 terminals (hereinafter the “Marketing Activity”). The offer includes provision of a license to Delek Europe for the exclusive use of the BP brand in France for the petrol station network.

In consideration of the purchase of the Marketing Activity, Delek Europe has offered to pay EUR 180 million, subject to working capital and other adjustments at completion.

Following submission of the offer, Delek Europe paid a deposit of EUR 10 million in return for exclusivity from BP to negotiate completion of the transaction for the acquisition of the Marketing Activity . The offer is valid up to October 15th 2010.

On February 4th 2010, BP informed its employees of the proposed offer and commenced consultations with the relevant works councils as required by French law. Upon acceptance of the offer by BP and signing of the agreements, a further EUR 10 million deposit will be paid and the remaining amount will be paid on completion of the transaction.

For more on this story, please click here.

%d bloggers like this: