Fuel company Alon announced today that it has acquired part of giant Total-Fina's assets in the US. The assets were sold following a tender Total-Fina published, in which Alon was the sole bidder. An agreement was signed yesterday, in culmination of negotiations that began last April.
The assets include an oil refinery with 200 employees, six fuel storage terminals, 1,700 gas stations, 1,000 of which are owned by various distributors and 700 owned by Total-Fina. Some are operated by subsidiary SCS, the exclusive distributor for part of the US for Seven-Eleven convenience stores.
The acquisition also includes ownership of a 900 kilometer oil pipeline, conducting crude oil from a US coast to an oil refinery. The pipeline is expected to serve in the future for importing crude oil products into the US.
Alon says that the acquisition of part of Total-Fina's assets will lead to the company's participation in fuel exploration in the world in the future. The parties plan to complete the deal, including the financial side, within three months.
Alon did not disclose the deal's precise financial details today, but company sources say it runs into hundreds of millions of dollars. The sources also say that Total-Fina in the US has an annual turnover of more than $1 billion. Alon says it will "own 90% of the assets, and Fina's executive management will own 10%".
Alon also says that under the deal, it will become the owner of 200 Seven-Eleven stores, and that the deal will be financed by a consortium of local and international banks.
Published by Israel's Business Arena on 21 May, 2000