The fuel marketing and refining assets of Total and Erg in the TotalErg joint venture would be sold to the Italian Group API. An agreement to this effect was signed recently. For a total value of €750 million, the expected sale of all of TotalErg’s assets would be completed by this third transaction – the divestment of the LPG and Commercial Sales businesses.
Total, in return, is planning to reinforce its lubricants business in Italy as the company plans to acquire the 51% stake of Erg as part of the joint venture between the companies in the lubricants activities. That stake would be ultimately terminated.
The fuel market in Italy is a fragmented market and the outlook of the Group about its expectations for profitability was not in line with what the market was generating despite the fact that both the shareholders of the joint venture undertook great efforts. And TotalErg is the fourth-largest fuel marketer in Italy – a joint venture formed by the merger of Total and Erg in 2010. The consolidation of Total in the lubricants segment is however in lien with the expectations and strategy for profitability of the Group because this segment in the market is offering satisfactory growth perspectives.
“The successful monetization of these mature activities in a challenging market is another example of our active portfolio management strategy in Marketing & Services. It also helps reduce our refining capacity in Europe while taking advantage of a favorable market,” said Momar Nguer, President, Marketing & Services. “The buyout from Erg of the lubricants activity allows us to focus and expand this high-return business. In addition, we will maintain our presence in the truck refueling business in Italy with our European network AS24, as well as in aviation fuels.”
Italy has been a market for Total for the last 60 years. Aviation and truck fuel, lubricants, additives, special fluids and related services are the products that the Group markets. The group also has interests in five exploration blocks - of which it operates four blocks and all of which are located in the same region of the southern Apennines and it also operates the Tempa Rossa oil field which at present is being development, in addition to marketing the above products and services.
Products of SunPower in solar panels, Saft in batteries and Hutchinson in materials, all Total affiliates, so distribute their products in Italy.
Total is also a big player in the low-carbon energies segment and is also a leading international oil and gas company. It employs about 98,000 employees spread in more than 130 countries worldwide.
(Source:www.busineswire.com)
Total, in return, is planning to reinforce its lubricants business in Italy as the company plans to acquire the 51% stake of Erg as part of the joint venture between the companies in the lubricants activities. That stake would be ultimately terminated.
The fuel market in Italy is a fragmented market and the outlook of the Group about its expectations for profitability was not in line with what the market was generating despite the fact that both the shareholders of the joint venture undertook great efforts. And TotalErg is the fourth-largest fuel marketer in Italy – a joint venture formed by the merger of Total and Erg in 2010. The consolidation of Total in the lubricants segment is however in lien with the expectations and strategy for profitability of the Group because this segment in the market is offering satisfactory growth perspectives.
“The successful monetization of these mature activities in a challenging market is another example of our active portfolio management strategy in Marketing & Services. It also helps reduce our refining capacity in Europe while taking advantage of a favorable market,” said Momar Nguer, President, Marketing & Services. “The buyout from Erg of the lubricants activity allows us to focus and expand this high-return business. In addition, we will maintain our presence in the truck refueling business in Italy with our European network AS24, as well as in aviation fuels.”
Italy has been a market for Total for the last 60 years. Aviation and truck fuel, lubricants, additives, special fluids and related services are the products that the Group markets. The group also has interests in five exploration blocks - of which it operates four blocks and all of which are located in the same region of the southern Apennines and it also operates the Tempa Rossa oil field which at present is being development, in addition to marketing the above products and services.
Products of SunPower in solar panels, Saft in batteries and Hutchinson in materials, all Total affiliates, so distribute their products in Italy.
Total is also a big player in the low-carbon energies segment and is also a leading international oil and gas company. It employs about 98,000 employees spread in more than 130 countries worldwide.
(Source:www.busineswire.com)
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