The purchase provides Z Energy with ownership of the Caltex business in New Zealand that includes 147 retail outlets and 73 diesel outlets.
The deal comes on the heels of Chevron’s separate sale of its 11.4% interest in New Zealand Refining Co. Ltd., which operates the 107,000-b/d Marsden Point refinery at Northland on the North Island’s east coast last week (OGJ Online, May 29, 2015). Z Energy holds a 15% interest in the refinery.
Z Energy says its deal with Chevron excludes Chevron’s upstream interests, but adds that it was in the best position and a logical buyer of Chevron’s retail and distribution chain.
The company has now vastly increased its market share in New Zealand. Formed 5 years ago, Z Energy says this latest acquisition will bring to 350 its number of retail outlets. The company bought 210 outlets from Royal Dutch Shell PLC in 2010.
Z Energy will raise $185 million (NZ) from shareholders to help fund the Chevron acquisition, which is expected to yield $25 million in synergies from 2017 and give an immediate boost to the company’s earnings.