Chevron returns to service stations with $425m Puma deal
US energy major Chevron has made a surprise return to the convenience fuels sector.
US energy major Chevron has made a surprise return to the convenience fuels sector after paying $425m to scoop up Puma Energy — Australia’s largest independent fuel retailer — just four years after selling its stake in Caltex.
The deal hands Chevron control of Puma’s 360 service stations, along with a fuel transport business, and follows a formal sales process undertaken by Bank of America Merrill Lynch earlier this year.
Market rumours had been growing that Chevron was eyeing a return to the bowser business despite selling its 50 per cent stake in Australian fuels operator and refiner Caltex in 2015 for a whopping $4.7bn.
Chevron said its return to the Australian fuels sector made sense as part of its broader global strategy. “As part of our refining and marketing value chain approach, Chevron’s intent is and has always been to place its refined products in desired markets, and Australia fits the profile,” a Chevron spokeswoman said.
“Our divestment in 2015 was aligned with our global asset sale commitment at the time to return cash to Chevron.”
Australia’s fuels sector is attracting strong interest from foreign suitors who still see growth opportunities despite the market being relatively mature. Caltex this month rejected a $8.6bn bid from Canadian giant Couche-Tard while Britain’s EG Group scooped up Woolworths’ 540 retail sites in a $1.7bn deal just over a year ago.
Puma, controlled by Swiss commodities trader Trafigura, entered the local market in 2013. Its assets include the former Queensland-based Neumann Petroleum business that includes 125 service stations and a seaboard fuel terminal in Brisbane, along with the former Ausfuel business that it purchased from Archer Capital for $652m , and the Queensland fuel marketer Central Combined Group.
“The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth,” said Mark Nelson, Chevron’s executive vice-president for Downstream and Chemicals.
“It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply.”
The deal, which does not include Puma’s bitumen unit, is expected to close in mid-2020.
Puma said it was part of a global strategy to improve its balance sheet after it suffered a net loss in the first half of 2019.
“This transaction marks another positive step forward in Puma Energy’s commitment to optimise our global portfolio and deleverage our balance sheet by the end of 2020,” chief executive Emma FitzGerald said.
“This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which will drive growth.”
The deal hands Chevron control of Puma’s 360 service stations along with a fuel transport business and follows a formal sales process undertaken by BAML earlier this year.
Market rumours had been growing that Chevron was eyeing a return to the bowser business despite selling its 50 per cent stake in Australian fuels operator and refiner Caltex in 2015 for a whopping $4.7 billion.
Chevron said its return to the Australian fuels sector made sense as part of its broader global strategy.
“As part of our refining and marketing value chain approach, Chevron’s intent is and has always been to place its refined products in desired markets, and Australia fits the profile,” a Chevron spokeswoman said. “Our divestment in 2015 was aligned with our global asset sale commitment at the time to return cash to Chevron.”
Australia’s fuels sector is attracting strong interest from foreign suitors who still see growth opportunities despite the market being relatively mature. Caltex this month rejected a $8.6bn bid from Canadian giant Couche-Tard while the UK’s EG Group scooped up Woolworths’ 540 retail sites in a $1.7bn deal just over a year ago.
Puma, controlled by Swiss commodities trader Trafigura, entered the Australian market in 2013.
Its assets include the former Queensland-based Neumann Petroleum business that includes 125 service stations and a seaboard fuel terminal in Brisbane, along with the former Ausfuel business that it purchased from Archer Capital for $652m some years ago, along with the Queensland fuel marketer Central Combined Group.
“The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth,” said Mark Nelson, Chevron’s executive vice president for Downstream & Chemicals. “It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply.”
The deal, which does not include Puma’s bitumen unit, is expected to close in mid 2020.
Puma said it was part of a global strategy to improve its balance sheet after it suffered a net loss in the first half of 2019.
“This transaction marks another positive step forward in Puma Energy’s commitment to optimise our global portfolio and deleverage our balance sheet by the end of 2020,” Puma Energy chief executive Emma FitzGerald said. “This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which will drive growth as part of our customer-focused five-year strategy.”
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