Israel-based petroleum derivatives supplier Delek Group has signed a memorandum of understanding to acquire an undisclosed company that owns a network of filling stations and other fuel sector-related interests in Europe for E150 million.
The Delek Group is carrying out the acquisition through a wholly owned European subsidiary. The Israeli group will have a six-month exclusivity timeframe to carry out due diligence on the company that it is acquiring. The undisclosed company is believed to own between 300 and 400 gas stations in western Europe.
Industry sources are of the opinion that Delek had initiated the negotiations before it announced the appointment of Mordechai Ben-Shach as CEO of its European subsidiary, Delek Europe.
In 2007, the group acquired 803 Texaco-branded and 66 private-branded fuel stations in the Benelux region from US-based oil giant Chevron for E342 million. Delek is reportedly seeking to create economies of scale by acquiring additional fuel station networks, according to market sources.