BP Sells German Service Stations To Polish Oil Major PKN ORLEN

12-Dec-2002
BP announced that it has signed an agreement to sell 494 service stations in Germany to PKN ORLEN, Poland's largest manufacturer and distributor of fuels. The sale of these stations - based in North and North East Germany - enables BP to take a major step towards meeting the German Federal Cartel Office's condition when approving BP's acquisition of Veba Oil that it sell four per cent of the combined BP/Aral retail market share of 26 per cent, based on year 2000 volumes, as the sites involved equate to 2.4 per cent. PKN ORLEN, which is quoted on the Warsaw and London stock exchanges, is acquiring these stations as part of its strategy to develop a pan-regional retail network and to take advantage of the opportunities represented by Poland's accession to the European Union in 2004. PKN ORLEN will pay EUR140 million in cash, including the assumption of debt for the stations, subject to adjustments at closing. The parties expect to close the deal, which is conditional on regulatory approvals, on February 28, 2003. Following the completion of the acquisition, the stations in Germany will be re-branded with the premier ORLEN brand during 2003. PKN ORLEN intends to base its regional headquarters in the Hamburg area.

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