Essar's retail arm to acquire UK forecourt operator for £400M
What's the story
Essar Energy Transition's retail arm, EET Retail, has announced its plan to acquire independent UK forecourt operator SGN Retail. The deal, estimated at around £400 million, will add 118 sites to EET's network and create a 235-site estate. This will make it the UK's second-largest forecourt operator with direct integration into fuel production.
Growth strategy
EET aims to expand network to 800 sites by 2031
The acquisition will give EET Retail an annual fuel throughput of over 650 million liters, combining SGN Retail's 118 locations with its own 117.
The company intends to expand this network to about 800 sites by 2031, capturing some 9% of the UK market.
Fuel for these sites will be supplied by Essar's Stanlow refinery in Cheshire.
Strategic importance
Acquisition critical for long-term UK strategy, says EET CEO
EET Retail CEO Arvan Ruia stressed the importance of this acquisition in their long-term UK strategy.
He said, "Building a scaled, vertically integrated retail forecourt platform is a critical pillar of our long-term UK strategy."
Ruia also noted that SGN Retail has one of the highest-quality forecourt networks in the UK and this acquisition will help them deliver competitive prices at the pumps for UK motorists.
Supply chain efficiency
Move to reconnect fuel production with retail distribution
The acquisition comes as EET seeks to reconnect fuel production with retail distribution amid claims that the UK's fuel market has become fragmented.
The company said this model would allow fuel refined at Stanlow to be distributed more directly to its own forecourts, reducing reliance on imports and multiple layers in the domestic supply chain.