ROME (Reuters) -A group of Italian companies has agreed to buy a network of 1,200 mainly Esso-branded fuel stations in Italy from Britain's EG Group, the two sides said on Tuesday. The Italian
Italian Firms Acquire Esso's 1,200 Fuel Stations in Strategic Deal
Overview of the Acquisition
ROME (Reuters) -A group of Italian companies has agreed to buy a network of 1,200 mainly Esso-branded fuel stations in Italy from Britain's EG Group, the two sides said on Tuesday.
Details of the Deal
The Italian consortium, which is acquiring about 6% of the national fuel distribution network through the deal, includes PAD Multienergy, Vega Carburanti, Toil, Dilella Invest, and GIAP.
Strategic Implications
The transaction, which gives EG Italia an enterprise value of 425 million euros ($494 million), marks EG Group's exit from Italy, the British company said in a statement.
Regulatory Approval Process
EG Group said the deal was in line with its strategy to focus on its core markets, and proceeds would be used to further reduce its debt.
"The acquisition of EG Italia brings control of a strategic asset - namely the network of 1,200 fuel distribution and roadside service sites (convenience stores, food services) - back into the hands of national private operators," said a separate statement on the website of PAD Multienergy.
The deal will be submitted to Italy's competition authority for approval. Italy's Mediobanca was among the consortium's advisers on the deal. BofA Securities provided financial advice to EG Group and A&O Shearman legal advice
($1 = 0.8611 euros)
(Reporting by Angelo AmanteEditing by Mark Potter)
