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St1 to buy Shell's fuel retail network of 420 stations in Norway

Privately owned Finnish company St1 Nordic has signed a contract with Shell under which it will buy the Shell-owned Smart Fuel AS service station network in Norway. Shell and St1 will also create a joint venture for the aviation fuel business. St1 will use Shell's trademark in Norway. A source said by telephone that Shell had 420 stations in Norway.



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While information on the number of stations that are part of the network being purchased was not readily available in press releases or websites of either Shell, St1 or Smart Fuels, a source close to Shell in Norway who was reached by telephone said they were 420.

“The deal is expected to be closed in the second half of 2015. The commercial terms of the transaction are confidential. St1 has also concluded a long-term licensing agreement on the use of Shell trade mark in the Norwegian market to continue provision of current services for clients,” St1 said.

“St1’s expanding service station network will provide high quality environment-friendly products and services for clients through more than 1,500 retail stations in Finland, Sweden and Norway,” the company added.

Shell also confirmed the transaction in its own web page as well as the 50-50 aviation joint venture.

“The sale is consistent with Shell’s strategy to concentrate its downstream footprint on a smaller number of assets and markets where it can be most competitive. Recent examples include the sale of refineries in the UK, Germany, France, Norway and the Czech Republic, and downstream businesses in Australia and Italy,” Shell said.

St1 said it had total sales in 2013 of some 6.6 billion euros. St1 has more than 550 employees and is headquartered in Helsinki.

 

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