Tommy Breen, chief executive, DCC
DCC has reached agreement with Alimentation Couche-Tard to acquire a commercial, aviation and retail fuels business in Denmark, substantially formerly owned by Shell.
The business comprises the package resulting from the purchase by Couche-Tard of Shell’s downstream marketing operations in Denmark, agreed in March 2015.
The acquisition will comprise Shell’s commercial and aviation distribution business in Denmark and a 139-site retail petrol station network and contracts to supply 66 dealers.
DCC will also enter into a long-term brand partnership with Shell to operate the network under the Shell brand. The transaction will require a total investment by DCC of almost €38m.
The business will be merged with DCC’s existing oil distribution business in Denmark and will leverage DCC’s newly developed retail operating platform.
The acquired business will have total incremental volumes of approximately 0.9 billion litres and is expected to generate an initial return on invested capital commensurate with DCC’s Energy’s existing returns.
Tommy Breen, chief executive of DCC, said: “This acquisition will significantly strengthen our business in Denmark, as well as further develop our presence in the retail market for transport fuels, following our previous acquisitions in the European retail petrol station market in Sweden and France.”
The completion of the acquisition of the package by DCC is conditional on EC competition clearance and is expected to complete in late 2016.