Z Energy to acquire Chevron NZ
Z Energy to pay $785 million for Chevron NZ.
Jenny Ruth talks about Z Energy buying Chevron NZ on NBR Radio and on demand on MyNBR Radio.
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As foreshadowed, Z Energy [NZX: ZEL] has signed an agreement to acquire Chevron's fuel business in New Zealand, including the Caltex petrol chain.
The deal will have to be signed off by the Commerce Commission and the Overseas Investment Office first.
In an announcement to the stock exchange, Z Energy says it is paying $785 million for all of the shares of Chevron NZ, operator of 147 Caltex service stations and 73 Caltex unstaffed diesel fuel filling stations serving the trucking industry.
Z Energy shares surged on the news and were up more than 14% at $5.85 in morning trading.
The deal comes after Chevron sold its 11.4% stake in Refining NZ last week.
The proposed acquisition excludes Chevron’s oil and gas exploration interests.
In December Chevron announced a separate Bermuda registered company, Chevron New Zealand Exploration, got exploration rights to three blocks 161 km east of Wellington in the Pegasus and East Coast basins.
Chevron will be the operator of the block with a 50% working interest. Statoil has the other 50%. Seismic surveys are due to begin next year.
On the acquisition, Z Energy chief executive Mike Bennetts says it is a “major opportunity in the company’s development, with substantial advantages for the New Zealand market.”
In the year to December Chevron New Zealand Holdings had revenue of $2.2 billion and net profit of $43m, down from a profit of $86m in 2013.
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Campbell Gibson
Tue, 02 Jun 2015
Tue, 02 Jun 2015
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Z Energy to acquire Chevron NZ
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