OMV and EG Group reach agreement for EG Group to acquire the OMV filling station business in Germany. The transaction is subject to required regulatory approvals and closing is expected in 2021.
OMV, the international, integrated oil, gas and petrochemicals company headquartered in Vienna, Austria, and EG Group, a leading global independent petrol forecourt convenience retail operator, announced the agreement for EG group to acquire the OMV filling station business in Germany.
The purchase price amounts to EUR 485 mn. As part of the agreement, EG Group will assume outstanding lease liabilities resulting in a total enterprise value for the Business of approximately EUR 614 mn. The purchase price is subject to customary net working capital and net debt adjustments.
The agreement encompasses 285 filling stations in southern Germany with focus on Bavaria and Baden-Württemberg, which have only a very limited degree of integration with OMV’s refinery in Germany, as the refinery is specialized in petrochemicals production. OMV remains strongly committed to its remaining operations in Germany centered on its highly integrated petrochemicals operations in the Burghausen refinery.
“We are delighted about the level of interest in our filling station business in Germany and to have reached an agreement with EG Group. This marks a further step in our previously announced 2-billion-Euro divestment program and this transaction will reduce OMV’s debt by approximately half a billion euros at the time of closing”, said Rainer Seele, Chairman of the Executive Board and CEO of OMV.
Mohsin Issa CBE and Zuber Issa CBE, co-Founders and co-CEOs of EG Group, commented: “We are very pleased to be welcoming the OMV Deutschland filling station business into EG Group. This attractive portfolio of forecourts with significant retail and foodservice operations is an exciting opportunity to expand EG’s footprint in Germany, a key European market where we see significant growth potential for our Group.”
OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Central and Eastern Europe as well as a balanced international portfolio, with Middle East & Africa, the North Sea, Russia and Asia-Pacific as further core regions. Daily average production was 487,000 boe/d in 2019. In Downstream, OMV operates three refineries in Europe and owns a 15% share in ADNOC Refining and Trading JV, with a total annual processing capacity of 24.9 mn tons. Furthermore, OMV has a 75% participation in Borealis, one of the world’s leading producers of polyolefins. The Company operates about 2,100 filling stations in ten European countries. OMV runs gas storage facilities in Austria and Germany. In 2019, gas sales volumes amounted to around 137 TWh. Sustainability is an integral part of OMV’s corporate strategy. OMV supports the transition to a lower-carbon economy and has set measurable targets for reducing carbon intensity and introducing new energy and petrochemical solutions.