According to the newspaper, BP has teamed up with UK investment bank MerchantBridge to make its bid, in a deal valued at around $600 million. Other contenders in the running include Malaysia’s Petronas and the Netherlands/Switzerland-headquartered Vitol.
Pakistan State Oil (PSO) is Pakistan’s leading oil firm, with a more than 79% share of the black oil market and a 58% share of the white oil market, according to the company. It is engaged in the import, storage, distribution and marketing of various products, including petrol, LPG, CNG and petrochemicals, and controls a network of 3,700 fuel stations in the country, as well as two oil refineries.
PSO’s latest financials look strong, and it has strengthened its position in Pakistan’s fuel market in recent months. For the first half of year 2006-07, PSO’s market share was 46.3% in motor gasoline, 60.5% in high-speed diesel, and 71.5% in kerosene oil. The company’s market share in fuels grew to 67.4%, up from 65% in the corresponding period of the previous year.
Once the 51% stake has been successfully auctioned off, 3% of the company will remain in the Pakistani government’s hands. The deal is expected to close shortly.
