By Jean Christou
B.P. YESTERDAY announced the sale of its 70 outlets and other inland fuels businesses in Cyprus to Hellenic Petroleum of Greece.
The sale excludes BP’s international businesses, Air BP and BP Marine, and BP Lubricants, a statement said.
“The decision to sell is the result of BP’s ongoing review of its global portfolio, which concluded that the retail and other inland fuels businesses in Cyprus would have longer term value to a company wishing to establish a significant position in the Cyprus fuels market and as a platform for regional expansion,” the statement said. The financial details of the deal would not be disclosed, it added.
“The retail and other inland fuel businesses in Cyprus are a profitable operation with highly skilled and professional staff,” said George Petrou, BP’s country president in Cyprus. “It has grown steadily over the years but no longer fits within BP strategy. We have therefore decided to reposition our assets and focus on areas where we believe we can deliver a stronger performance.”
Commerce, Industry and Tourism Minister Nicos Rolandis told the Cyprus Mail that BP had officially announced the decision to him earlier yesterday. “They will sell their stations in Cyprus but they will stay with the airport and lubricants business,” he said. They are selling to Hellenic Petroleum, but this is subject to approval by the monopolies commission and also by me.”
Hellenic Petroleum is 67.8 per cent owned by the Greek state. It is the largest Greek refiner, owning 50 per cent of Greece’s refining capacity through two refineries. The company also has a 23 per cent share of the Greek retail market through the EKO brand and is the leading integrated oil company in Greece.
“We are delighted to acquire BP’s retail and other inland fuels businesses in Cyprus. it is a strategic opportunity for our company,’ said Athanasios Karachailos, managing director of Hellenic Petroleum. “It will provide a platform for expanding in the region and we are well equipped to make it a very successful business venture.”
The shares of BP Cyprus will transfer to Hellenic together with around 40 staff members under local rules and regulations and existing terms of employment, the statement said. The BP stations will be branded with the EKO logo. The other 30 or so staff will be employed by BP’s remaining businesses in Cyprus. BP Cyprus sells around 500 million litres of fuel per annum on the island, making it the market leader with a 35 per cent share.
In July, BP sold eight of its stations to Russian company Lukoil under order from the competition committee applying anti-monopoly rules. Exxon Mobile sold another eight to the Russian firm.
Lukoil has already stepped into the market and is converting to its trademark logo in Nicosia and other areas. Lukoil’s 16 stations will now give the company a six per cent share of the Cyprus market.
