Attock Petroleum wants to acquire Chevron Pakistan

[Devil Soul]

Attock Petroleum, Pakistan’s third largest oil marketing company, on Monday announced a bid to acquire Chevron Pakistan, the fourth largest oil retailer in the country.

The announcement came through a letter send to the Karachi Stock Exchange on Monday, saying that the board of directors of Attock Petroleum were ready to make a bid to acquire 100 percent of Chevron Pakistan. The company did not indicate any initial bid price.

Attock is the first of the three parties that had begun due diligence to make an actual bid. The other two are Byco Petroleum, an oil refining and marketing company, and the Nishat Group, a diversified conglomerate with interests in banking, textiles, cement, and power.

Analysts view Attock as the strongest contender for Chevron’s assets in Pakistan, which include 540 retail outlets that operate under the Caltex brand name. Chevron’s share in the Pakistani market comes to about 5 percent, placing it in fourth place behind Pakistan State Oil, Shell Pakistan, and Attock Petroleum. It is the largest petroleum retailer not to be listed on the Karachi Stock Exchange. In addition to its retail outlets, Chevron has 12 storage depots with a capacity of about 12,000 tons, an 11 percent stake in a cross-country white oil pipeline, and a 12 percent stake in Pakistan Refinery. The company also has a relatively high market share of about 27 percent in the high-margin lubricants segment.

Attock Petroleum is the third largest oil retailer in the country and owns about 350 retail outlets spread across the country, though mostly on highways and major thoroughfares close to industrial areas. In addition to bidding to acquire Chevron Pakistan, Attock is also investing aggressively in organic expansion by building more retail outlets of its own. For the financial year ending June 30, 2012, the company had revenues of Rs153 billion, up 39.7 percent compared to the same period in the previous year.

The company is part of the Attock Group, the largest private-sector energy conglomerate in Pakistan by revenues. In addition to Attock Petroleum, the group owns Attock Refinery and National Refinery, and Pakistan Oilfields, an oil exploration and development company. It also owns Attock Cement, a construction materials manufacturer.

Were Attock to be successful in its bid to acquire Chevron, it would be acquiring assets quite complementary to its own network. “Most of Chevron’s retail outlets are in Sindh, whereas Attock has most of its outlets further up north. It would also be gaining access to outlets in prime retail locations,” said Hussain Yasar, a research analyst at KASB Security, an investment bank.

While a bid price has not yet been announced, analysts expect Chevron to accept bids between Rs15 billion and Rs17 billion. If the other two parties that have publically indicated interest go ahead with their bids, the price may rise to as much as Rs20 billion, especially since Total SA is rumoured to be interested in bidding as well.

Chevron announced on March 13, 2012 that it was exiting the retail business in Australia, Egypt and Pakistan. The company did not offer much in terms of details, though the announcement seems to be part of the worldwide trend of the major global oil companies shedding their downstream assets – refining, marketing and retail sales – to focus on the more profitable upstream businesses, such as oil and gas exploration and development.

The market’s reaction to Attock’s bid was somewhat muted. In Monday’s trading on the Karachi Stock Exchange, Attock Petroleum’s shares closed at Rs498.51, up just 0.34 percent for the day.
Attock Petroleum wants to acquire Chevron Pakistan | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[qamar1990]

Attock Petroleum, Pakistan’s third largest oil marketing company, on Monday announced a bid to acquire Chevron Pakistan, the fourth largest oil retailer in the country.

The announcement came through a letter send to the Karachi Stock Exchange on Monday, saying that the board of directors of Attock Petroleum were ready to make a bid to acquire 100 percent of Chevron Pakistan. The company did not indicate any initial bid price.

Attock is the first of the three parties that had begun due diligence to make an actual bid. The other two are Byco Petroleum, an oil refining and marketing company, and the Nishat Group, a diversified conglomerate with interests in banking, textiles, cement, and power.

Analysts view Attock as the strongest contender for Chevron’s assets in Pakistan, which include 540 retail outlets that operate under the Caltex brand name. Chevron’s share in the Pakistani market comes to about 5 percent, placing it in fourth place behind Pakistan State Oil, Shell Pakistan, and Attock Petroleum. It is the largest petroleum retailer not to be listed on the Karachi Stock Exchange. In addition to its retail outlets, Chevron has 12 storage depots with a capacity of about 12,000 tons, an 11 percent stake in a cross-country white oil pipeline, and a 12 percent stake in Pakistan Refinery. The company also has a relatively high market share of about 27 percent in the high-margin lubricants segment.

Attock Petroleum is the third largest oil retailer in the country and owns about 350 retail outlets spread across the country, though mostly on highways and major thoroughfares close to industrial areas. In addition to bidding to acquire Chevron Pakistan, Attock is also investing aggressively in organic expansion by building more retail outlets of its own. For the financial year ending June 30, 2012, the company had revenues of Rs153 billion, up 39.7 percent compared to the same period in the previous year.

The company is part of the Attock Group, the largest private-sector energy conglomerate in Pakistan by revenues. In addition to Attock Petroleum, the group owns Attock Refinery and National Refinery, and Pakistan Oilfields, an oil exploration and development company. It also owns Attock Cement, a construction materials manufacturer.

Were Attock to be successful in its bid to acquire Chevron, it would be acquiring assets quite complementary to its own network. “Most of Chevron’s retail outlets are in Sindh, whereas Attock has most of its outlets further up north. It would also be gaining access to outlets in prime retail locations,” said Hussain Yasar, a research analyst at KASB Security, an investment bank.

While a bid price has not yet been announced, analysts expect Chevron to accept bids between Rs15 billion and Rs17 billion. If the other two parties that have publically indicated interest go ahead with their bids, the price may rise to as much as Rs20 billion, especially since Total SA is rumoured to be interested in bidding as well.

Chevron announced on March 13, 2012 that it was exiting the retail business in Australia, Egypt and Pakistan. The company did not offer much in terms of details, though the announcement seems to be part of the worldwide trend of the major global oil companies shedding their downstream assets – refining, marketing and retail sales – to focus on the more profitable upstream businesses, such as oil and gas exploration and development.

The market’s reaction to Attock’s bid was somewhat muted. In Monday’s trading on the Karachi Stock Exchange, Attock Petroleum’s shares closed at Rs498.51, up just 0.34 percent for the day.
Attock Petroleum wants to acquire Chevron Pakistan | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

i hope they do.
i dont want no foreign companies in pakistan.

 

[kbd-raaf]

i hope they do.
i dont want no foreign companies in pakistan.

Name me one country in the world which has risen out of poverty without significant FDI.

Now name me one country in the world (other than international pariah states) that don't have foreign companies.

This deal needs to be looked at carefully by anti-competition officials. The third and fourth largest oil producers in a country in an M&A is a big deal.

 

[qamar1990]

Name me one country in the world which has risen out of poverty without significant FDI.

Now name me one country in the world (other than international pariah states) that don't have foreign companies.

This deal needs to be looked at carefully by anti-competition officials. The third and fourth largest oil producers in a country in an M&A is a big deal.

this deal dont need to be looked at for nothing, never mind 3rd and fourth, in america 1st and second combine together.
the united states rose like that. they were in the situation we are in only a 100 yrs ago and within 30 yrs they became a superpower.

all countries have foriegn companies but, those countries are now dependant on those foreign companies.
those big companies were once started in garages as well they werent born that big.

 

[kbd-raaf]

this deal dont need to be looked at for nothing, never mind 3rd and fourth, in america 1st and second combine together.
the united states rose like that. they were in the situation we are in only a 100 yrs ago and within 30 yrs they became a superpower.

all countries have foriegn companies but, those countries are now dependant on those foreign companies.
those big companies were once started in garages as well they werent born that big.

None of what you just said made any sense to me.

 

[qamar1990]

None of what you just said made any sense to me.

maybe you should read it again.


i said ive seen the 1st a 2nd biggest companies combine together in america so 3rd and 4th is nothing in comparison.

 

[kbd-raaf]

maybe you should read it again.


i said ive seen the 1st a 2nd biggest companies combine together in america so 3rd and 4th is nothing in comparison.

Okay..

Would you be able to educate me towards which two companies were a part of the merger?

As I know it, the creation of monopolies within a market economy is usually avoided.

 

[qamar1990]

Okay..

Would you be able to educate me towards which two companies were a part of the merger?

As I know it, the creation of monopolies within a market economy is usually avoided.

the biggest airlines in america.

 

[Nishan_101]

Really sounds great. I think they should then look towards taking oil from Sarkareek as well.

 

[forcetrip]

There goes the only fuel i put in my car. I guess its going to be Shell after this. Goodbye my engine scrubbers .. Techron.