Shell UK Ltd’s agreement to acquire 254 petrol retail sites in the UK from Rontec Investments LLP (the Snax 24 Consortium) for a total cash consideration of around $400mln (£240m), is the biggest single expansion of Shell’s fuel retailing network in the UK.
“The deal with the Snax 24 Consortium fits Shell’s global downstream strategy of pursuing opportunities in selected markets where we see prospects for growth,” said Mark Williams, downstream director.
“Shell is pleased to be investing in our retail business in the UK, a very competitive market,” said John Bullock, Shell’s executive vice-president, retail. “With this improved network of petrol stations, Shell will be able to provide more people with a top quality customer offer including quality branded fuels, in a convenient location and at a competitive price, helping us compete for the long term.”
The deal is the biggest single expansion of Shell’s petrol station network in the UK, where the company has marketed its fuels to motorists for nearly 100 years.
The company said the addition of the new stations – which are mostly in the Midlands and south east of England and fit well with Shell’s existing national network – will enhance Shell’s position as a leading fuels retailer in the UK, with 1,150 stations.
Completion of the agreement is expected around year-end subject to the satisfaction of regulatory and other conditions.