EG Group has completed its takeover of around 1,100 Esso service stations and 100 fuel supply contracts for third party sites in Italy from Esso Italiana.
The deal is part of the EG Group’s strategic partnership with ExxonMobil, which has made it the oil major’s largest global wholesaler customer.
Italy is a new European market for EG Group to extend operations into and the acquisition facilitates an opportunity to secure further assets in the Italian market. The completion follows the announcement of the deal with Esso Italiana last June and subsequent approval by the European Commission.
EG Group said it will look to do what it has successfully done across other markets - review the network in terms of retail potential, initially partner with and invest in a few locations with recognised global and local retail brands, understand the market dynamics and consumer perceptions with a view to then having the confidence to accelerate growth and development across Italy.
It will also actively engage and work with local brands, especially aspiring food-to-go formats.
Mohsin Issa, founder and co-ceo EG Group, said: “This announcement marks the start of the expansion of EG Group into Italy and other new markets during the course of 2018. For me, strategic brand partnerships are going to be important for the growth of EG Group in Italy.
“Through our customer knowledge, insight and experience across Europe, we understand that people value time and are continually looking to access retail locations that satisfy multiple customer missions and provide excellent welfare to motorists.
“Our business model enables customers to access a world-class fuel, convenience store and food-to-go offer. We have a local management team who will help shape our Italy investment.”
Gianni Murano, Esso Italiana Lead country manager said: “Through this strategic partnership with EG Italia we have now completed our conversion to the new business model and we expect to see great results”.
“The partnership combines EG Group strength as fuels retailer and its unique backcourt expertise with our high performing Esso fuels and marketing proposition. We will leverage our respective strengths to build a platform for growth and deliver to consumers a valued experience at Esso-branded service stations”.
The Italian affiliate has a dedicated leadership team in place that will operate from the Da Vinci Business Centre in Rome. The site network will be further supported by regional offices in Milan, Turin, Bologna, Catania, Bari & Naples. EG Group have about 100 employees working in Italy, some of whom transferred from Esso and others have been recruited for specific roles.
Salvatore Bianca, country manager (Italy), EG Group said: “Today is a very exciting day for EG Italia. I am confident, having completed the transfer and having established our support office in Rome, will enable our in-country management team to expand our strategic capabilities across Europe and formalise our reputation in Italy for being recognised as an effective fuel, convenience store and food-to-go retailer.
“I would also like to take the opportunity to thank my local team and colleagues from the EG Group, Esso Italiana, dealers, suppliers and our professional advisers who have supported us throughout the whole transfer process. The real work now starts.
“We look forward to working with Esso Italiana, our dealers, other retail brand partners, suppliers, contractors and stakeholders to provide high quality site services and the retail offer on our network.”