MOL has agreed to buy Italian Eni’s downstream business in Hungary, the Hungarian oil and gas group said late on October 21.
The deal will strengthen MOL’s leading position in the domestic retail market and comes just months after the Hungarian company completed the acquisition of Eni’s Agip network in the Czech Republic and Slovakia.
Under the agreement signed with Eni, Mol will acquire the entire share capital of Eni Hungaria, which manages 183 Agip branded petrol stations in Hungary, as well as wholesale activities in the country. Eni's lubricants wholesale business is excluded from the deal.
“The investment is in line with Mol Group’s strategy to extend its presence and increase significantly the retail market share within the supply radius of its core refineries," MOL said in a statement.
“This acquisition will ... significantly elevate our fuel volumes going through our network and ensure further overall margin capture," MOL's downstream head Ferenc Horvath added.
Closure of the transaction is subject to conditions, including competition clearance. Given the fact that Mol controls nearly 40% of Hungary's retail market, the competition office is likely to make some stipulations, Erste suggests in a note.
“Mol may need to sell some of its lower throughput stations in order to acquire this network. Most of the Agip stations have good locations, so MOL could improve its presence at premium locations in Hungary,” the analysts write.
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