Gunvor to Buy 50% Stake in Total’s Pakistan Fuel Stations
06 August 2024
Published in: Bloomberg
Gunvor Gp Ltd. agreed to buy TotalEnergies SE’s 50% stake in Pakistan’s second largest filling sta network, the latest move by a maj commodity trader into fuel retail. The Total Parco network, a 50-50 jt venture with Pak Arab Refinery Ltd, has more than 800 gas stas and lubricant distribution units. Gunvor is among global commodity houses tapping bumper profits to buy up downstream assets in a bet on emerging mkt demand and to lock in fuel purchase contracts.
▪️ It’s Gunvor’s second maj investment announced in a wk, after the firm agreed to acquire half of a biofuels refinery in the Netherlands. Establishing a large base of retail sites gives commodity houses an outlet for the products they trade and physical assets to bolster profit margins. It also provides valuable insight into fuel consumption trends, helping them build their trading op. Terms of the deal were not disclosed in coy stmts Tue. The stas will cont to use Total Parco branding for the next five yrs.
