Rompetrol Group took over the main independent petroleum products distributor in France, Dyneff, group chairman Dinu Patriciu yesterday stated. Rompetrol Group estimates it will double its turnover next year, to some 5bn dollars, now that it has taken over Dyneff, Patriciu added.
It also expects its EBITDA to increase by 20-25% and net income to witness a 10-12% growth following the takeover. The group''s assets will go up by 25%.
Dyneff last year sold 3.2 million cubic metres of petroleum products, an amount accounting for 66% of the total Romanian market, and targets 2.4bn-dollar turnover and 20 million-dollar operating income for this year. Its total assets are worth 280 million dollars.
"This acquisition is the most significant takeover ever conducted in the European Union by a corporation based in Romania," Patriciu said. He commented that this was the most important transaction of its kind ever conducted by a petroleum company from SE Europe.
The takeover agreement was signed in Paris on Wednesday, and the value of the deal was not revealed.
The French company is controlled by businessman Antoine Lecea, 73, along with his family. Lecea will take a seat on the board of directors of Rompetrol France, which Rompetrol will use for its operations in the second-largest economy of the euro zone.
"The negotiations for Dyneff began eight or nine months ago, and serious talks started about five months ago. We are planning other acquisitions abroad, as well, not only in the European Union, but I cannot provide any details. As an integrated company, we are looking for the cheapest resources and want to sell on the most stable markets," Patriciu said.
The transaction will be finalised in the first quarter of next year.
Rompetrol judges that Dyneff has a good financial situation, with "excellent" liquidity, little debt and no potential liabilities.
The company officials estimate Rompetrol will sell twice more in France and Spain, the markets where Dyneff operates, than in Romania. "The key to this business is the Petromidia Refinery. However, we will not sell Petromidia products in France, directly. For instance we will sell (products refined by Petromidia) in Turkey; we will buy from Italy and sell in France," Patriciu said, explaining that this system will be used to avoid high transportation expenses.
The 226 filling stations held by Dyneff will operate under the Rompetrol brand.
The deal will increase the number of Rompetrol filling stations by 70%, to 550, and its storage capacity will triple.
Another benefit being pursued by Rompetrol is the reduction of the company''s risk by combining the risks associated with the Eastern European states with those of France and Spain.
The acquisition was both self-funded by Rompetrol and partly paid for with a loan from the French bank Societe Generale. Patriciu did not reveal the value of the loan and did not say whether Societe Generale was the only lender bank. adrian.mirsanu@zf.ro
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