Journalism of Courage
Essar Energy Transition Retail acquires UK forecourt network SGN Retail
The acquisition is part of Essar Energy Transition’s strategy to integrate fuel production with fuel retailing in the UK.
The company also expects greater integration between fuel production and retailing to reduce supply-chain costs and support more competitive prices for motorists.
EET Retail Limited, the retail division of Essar Energy Transition Fuels (EET Fuels), has agreed to acquire 100 per cent of SGN Retail, a UK-based independent forecourt operator founded by Graham Peacock and Susan Tobbell.
The acquisition will add 118 forecourt locations to EET Retail’s existing network of 117 sites. Following the deal, the company will operate 235 fuel forecourts across the UK, with annual fuel throughput of more than 650 million litres.
The acquisition is part of Essar Energy Transition’s strategy to integrate fuel production with fuel retailing in the UK.
The company said the UK fuel market has become increasingly fragmented over the past two decades, with reduced investment in domestic refinery capacity contributing to more complex supply chains and greater reliance on imports.
With the SGN Retail acquisition, EET Retail will become the UK’s second-largest forecourt network with direct integration with fuel production.
The company aims to expand its network to around 800 forecourts by 2031, which it estimates would represent about 9 per cent of the UK market. The sites are planned to receive fuel directly from Essar Energy Transition’s Stanlow refinery.
EET Retail said supplying UK-refined fuel directly to its forecourts will help strengthen domestic fuel supply and improve distribution to consumers.
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The company also expects greater integration between fuel production and retailing to reduce supply-chain costs and support more competitive prices for motorists.
Arvan Ruia, CEO of EET Retail, said the acquisition of SGN Retail will accelerate the company’s plans to build a nationwide, vertically integrated forecourt network.
Viral Gathani, Head of Strategic Transactions at Essar Energy Transition, described the transaction as a key part of the company’s M&A strategy and said the financing support reflects confidence in the UK forecourt and fuels markets.
The acquisition will be funded through a combination of cash and a new £250 million senior debt facility.
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The facility has been arranged by First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Natixis, OakNorth Bank, Royal Bank of Canada, SMBC Bank International and Sound Point Capital Management.
EET Fuels and EET Retail were advised by RBC Capital Markets as financial adviser, while Herbert Smith Freehills Kramer and Weightmans acted as legal advisers.
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