Petrolina (Holdings) Public Limited (PHL) has finalized a significant €48.6 million acquisition of ExxonMobil Cyprus, marking a major milestone in its expansion strategy within the Cypriot market. This deal encompasses 68 Esso-branded service stations, bolstering Petrolina’s presence and operational capacity across the island.
On November 27, 2024, PHL disclosed that its wholly owned subsidiary, MED ENERGYWISE LTD, had signed an agreement to acquire 100% ownership of ExxonMobil Cyprus Limited (EMCL), a local subsidiary of Exxon Mobil Corporation, which has been operating in Cyprus since 1955. EMCL is known for supplying and distributing Synergy fuels through its extensive network of Esso-branded stations.
Financially, EMCL reported a turnover of €272.4 million and a net profit of €2.7 million in 2023, compared to €296.7 million and €5.4 million, respectively, in 2022. PHL stated that this acquisition aligns with its broader strategy to enhance its petroleum product marketing operations within Cyprus.
The purchase, valued at €48.6 million, will be financed primarily through a bank loan, with 10% (€4.8 million) already advanced in cash. The remaining balance will be paid upon regulatory approval and completion of the agreement. The competition commission’s clearance is among the key conditions for finalizing the transaction.
An independent expert conducted the financial assessment of the acquisition, using EMCL’s audited financial data as of December 31, 2023, historical performance, and growth potential. PHL anticipates the deal will create operational synergies and economies of scale, ultimately enhancing the Petrolina Group’s market performance and profitability.
Describing the acquisition as a purely commercial decision, PHL confirmed compliance with Cyprus Securities and Stock Exchange Law, highlighting that no “designated persons” under the law were involved in the transaction.
Legal counsel for the deal was provided by Harris Kyriakides, according to the company’s announcement. This acquisition reflects a pivotal step in Petrolina’s efforts to strengthen its market position and capitalize on synergies arising from its longstanding expertise in the petroleum sector.
Source: Cyprus Mail