Essar Group has acquired UK petrol station operator SGN Retail, adding 118 sites to its fuel-retail network and taking the number of stations operated by its Essar Energy Transition Retail business to 235, the company said on Monday. The transaction strengthens Essar’s presence in the UK’s fuel-distribution infrastructure and supports its plan to operate 800 outlets by 2031.
Essar Energy Transition Retail, or EET Retail, is part of Essar Energy Transition Fuels, which operates the Stanlow refinery in the United Kingdom. The refinery has a processing capacity of 200,000 barrels per day, giving the group an integrated supply base for its expanding retail network.
The acquisition will allow EET Retail to increase its direct control over the movement of fuel from refinery supply to petrol stations. Arvan Ruia, chief executive of EET Retail, said the purchase would accelerate the company’s plan to build a nationwide, vertically integrated platform of 800 sites, supported by direct refinery supply and aimed at delivering competitive prices for UK motorists.
The company did not disclose the value of the transaction. Two sources with knowledge of the matter estimated the deal at between £400 million and £450 million, equivalent to about $540.04 million to $607.55 million. The sources spoke on condition of anonymity. An Essar spokesperson declined to comment on the valuation.
EET Retail said the acquisition would be funded through cash and a £250-million senior debt facility. The facility was arranged with banks including First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Royal Bank of Canada and SMBC Bank International.
The addition of SGN Retail’s sites more than doubles EET Retail’s previously operated network, which stood at 117 stations before the transaction. Reaching the stated target of 800 outlets by 2031 would require the company to add a further 565 sites after the acquisition. The company has not provided a detailed timetable for those future additions or disclosed the locations of the newly acquired stations.
For UK motorists, the immediate operational significance of the deal is the expansion of a fuel-retail network linked directly to the Stanlow refinery. The transaction also increases Essar’s exposure to the economics of petrol-station operations, including fuel distribution, station management and retail pricing. EET Retail’s next steps will involve integrating the 118 acquired sites into its existing network and deploying the announced financing structure.
