Chevron Makes $292MM PEAH Deal
Chevron Australia Downstream Pty Ltd, a wholly-owned subsidiary of Chevron Corporation, has announced that it has signed a conditional share sale agreement with Puma Energy Asia Pacific B.V. to acquire all shares and equity interests of Puma Energy (Australia) Holdings Pty Ltd (PEAH) for $292 million (AU$425 million).
The acquisition of PEAH is expected to close in mid-2020, subject to regulatory approvals and the satisfaction of customary closing conditions, Chevron noted.
“The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth,” Mark Nelson, Chevron’s executive vice president for downstream and chemicals, said in a company statement.
“It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply,” he added.
Commenting on the deal, Emma FitzGerald, the CEO of Puma Energy, said, “this transaction marks another positive step forward in Puma Energy’s commitment to optimize our global portfolio and deleverage our balance sheet by the end of 2020”.
“This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which will drive growth as part of our customer-focused five-year strategy,” FitzGerald added.
In a company statement posted on its website, Puma Energy said its priority is to ensure a transparent and seamless transition of operations to Chevron for all employees, customers and business associates in Australia.
PEAH and its subsidiaries hold assets including a network of company-owned and retailer-owned service stations in Australia, a commercial and industrial fuels business, owned or leased seaboard import terminals and fuel distribution depots.
In May this year, Chevron U.S.A. Inc., another wholly owned subsidiary of Chevron Corporation, announced that it had completed the acquisition from Petrobras America Inc. of all the outstanding shares and equity interests of Pasadena Refining System, Inc. and PRSI Trading LLC for $350 million, excluding working capital.
On April 12 Chevron revealed that it had entered into an agreement to buy Anadarko. Twelve days later, Occidental Petroleum Corporation announced that it had made a proposal to acquire Anadarko and ultimately went on to purchase the company.
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