Total has agreed with Brazilian company Grupo Zema to acquire its fuel distribution company Zema Petroleo, Total announced Thursday.
According to the press release, the acquisition includes Gropo Zema's reseller and retailer arm Zema Diesel as well as its importation company Zema Importacao.
Zema Petroleo currently manages an extensive branded network of 280 dealer-operated service stations and several oil products and ethanol storage facilities, most of which are located in the states of Minas Gerais, Goias and Mato Grosso, the press release revealed.
"The agreement also includes supplies to third party retail stations in these regions," it added.
Total announced that thanks to the acquisition, the company is stepping into the largest South American market for the retail of fuels and into the world’s second largest low-carbon biofuels market.
The Group aims to expand its activities in this region with the objective of doubling the number of branded stations within five years, particularly throughout the Southeast and Central-west regions in Brazil.
According to the press release, the rebranding of the current 280 service stations will start in 2019 and new flagships stations will be open in selected locations.
“This acquisition is in line with our strategy to expand in large growing markets and in biofuels markets under our Climate roadmap,” Total's President of Marketing & Services Momar Nguer said in the press release.
The acquisition, the financial details of which have not yet been released, is subject to prior approval of the Brazilian competition authority, the press release said.
By Muhsin Baris Tiryakioglu
Anadolu Agency
energy@aa.com.tr
