Two more sales on the horizon in the fuel sector following BP

The sale of BP, which has been operating in the fuel distribution market in Turkey for 110 years, of its 770 fuel stations and its shares in ATAŞ, which currently houses a storage unit and port, has turned attention toward the sector. 

According to a report by Mehmet Kaya from Ekonomim; industry officials provided information that two new acquisitions are in the final stages within the fuel distribution sector, where profitability is limited.

Stating that the acquisition of BP's Turkish fuel operations by Petrol Ofisi was based more on a strategic decision than a purely commercial one, industry officials pointed to the importance of the ATAŞ facilities located in the Akdeniz district of Mersin, which were once refineries but were converted into port and storage facilities after their technology became outdated.

Noting that the low profitability in the sector makes volume essential, industry officials emphasized that BP was faced with the decision of either growing in fuel distribution to create volume or selling, and that information regarding BP's decision to sell had been circulating in the sector for some time. Reminding that Petrol Ofisi, which is owned by a foreign fund, has 1,935 stations, industry officials stated that with the BP acquisition, Petrol Ofisi will reach 2,705 stations, allowing it to build volume and increase its turnover.

Beyond this, industry officials emphasized that it will gain operational power with the ATAŞ facilities and will be able to control costs by bringing all types of fuel products into Turkey from the South for distribution, arguing that for this reason, Petrol Ofisi's decision stands out as a strategic move rather than a short-term commercial one. They underscored that Petrol Ofisi has gained a significant logistical advantage, particularly with ATAŞ.

TWO MORE MID-SIZED COMPANIES ARE NEGOTIATING

Stating that two more mid-sized domestic fuel distribution chains are at the negotiating table and that these could result in sales, industry officials noted that one of these domestic firms is in talks with a Russian company, while the other is in discussions with a domestic chain. Officials claimed that the expectation for these negotiations to result in sales is high. Noting that low profitability is one of the topics of discussion in the sector, officials pointed out that this will be one of the main agenda items in the distribution sector in the coming period and that these discussions will continue.

News Source: 12punto