Italians at Agip contemplate acquisition of Shell's Romanian filling stations

Italy’s Eni Group, one of the leading oil groups in Europe, is interested in buying the 58 filling station network that the Anglo-Dutch oil giant Shell has in Romania, sources close to the talks told Ziarul Financiar. Agip, which is Eni’s fuel retail arm, is in talks with Shell’s representatives. At the same time, Hungary’s MOL Group in is advanced negotiations for the same purpose, the quoted sources say, adding that another possible bidder might be Austrian OMV Group. The deal, estimated at about $70 million, could be concluded next week.

The takeover of SNP Petrom, the largest oil company in Romania, by the Austrians at OMV this summer also upturned the player hierarchy on the gas station market, putting OMV in the position of undisputed leader. After having missed out on the acquisition of Petrom, MOL is now exploring other options to expand its network in Romania. The takeover of Shell’s stations would help it achieve its strategic goal, 10% market share in the long run.

However, Agip’s interest in an extensive acquisition on the Romanian market would mean a change of strategy – from a wait-and-see approach rather focused on cutting losses to an expansive and aggressive approach. Such a move would push Agip among the top four players on the market and make it a likely contender for second position. Furthermore, the deregulation of the fuel market after Petrom’s privatisation is making the domestic market attractive to international companies, which have logged losses for years on end precisely because prices were not set against the oil quote on the international markets, as happens everywhere else in Europe.

Officials at Shell Romania SRL, which operates the group’s filling station network in Romania, say the information is based on rumours and speculations, while the management of Agip Romania, Eni’s local branch, did not dismiss the alleged talks.

“Agip is interested in expanding its operations (i.e. in Romania),” Antonio Cambiotti, Agip Romania chairman told Ziarul Financiar. He neither denied nor confirmed the information about the talks being held with Shell on the takeover of the 58 stations belonging to the local Shell branch.

“The articles that keep being run in the press about the commercial interest in Shell’s gas station network in Romania are based on rumours and speculations, on which we will not comment. In July 2003, Shell signed a contract with MOL for selling 23 filling stations. Having transferred 22 stations so far, Shell is currently operating 59 stations,” stated Angelica Iva, Shell Romania’s SRL spokesperson.

She added Shell’s business was increasingly improving, considering the financial results for 2003 ($3.7 million net profit), as well as the results for the first half of 2004. During this latter period, turnover went up 18% compared with the same time last year and 24% compared with the initial 2004 target.
adrian.mirsanu@zf.ro