Saudi Aramco, the world's largest oil producer, and France's Total SA are jointly planning to buy businesses such as Tas’helat Marketing Co. in order to enter the Kingdom’s fuel retail market, Bloomberg reported, citing people with knowledge of the matter.
Saudi Aramco Retail Co, a division of Aramco, may enter into a joint venture with the French oil giant to operate the business following a takeover, it added.
However, no final decisions have been taken and the group may decide against acquiring Tas’helat, which operates fuel stations under the Sahel brand in the Kingdom, or any other business, sources told Bloomberg.
The two firms are also looking at a range of options from consolidating some service stations to potentially starting the business from scratch, the report said.
French lender Credit Agricole SA and local investment bank Saudi Fransi Capital are advising the firms on their plans.
Earlier this month, Aramco and Total signed a deal on evaluating the feasibility of jointly acquiring a retail service station network in Saudi Arabia during Crown Prince Mohammed bin Salman’s official visit to France.
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