India's Essar Group has acquired UK petrol station operator SGN Retail, adding 118 sites to its network. This strategic acquisition is part of Essar's plan to expand its fuel retail presence in the UK to 800 outlets by 2031. The deal is valued between £400 million and £450 million, which translates to approximately $540.04 million to $607.55 million. This acquisition will bring the total number of petrol stations operated by Essar Energy Transition Retail (EET Retail) to 235.
The acquisition will be funded through a combination of cash and a £250 million senior debt facility. Several major banks are participating in this facility, including First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Royal Bank of Canada, and SMBC Bank International. Essar's goal is to create a nationwide, vertically integrated platform, leveraging its 200,000-barrel-per-day Stanlow refinery in the United Kingdom to ensure direct supply and competitive prices for UK motorists.
Alvan Ruia, CEO of EET Retail, stated that the new stations will be supplied by the Essar Stanlow refinery, which is expected to enable more competitive fuel prices. By reaching its target of 800 stations by 2031, Essar expects to capture approximately 9% of the UK's fuel market share. This expansion comes as other major players like BP and Shell are retreating from forecourts globally, providing Essar with an opportunity to enhance its market presence.
