US-based Chevron’s purchase of Puma’s business comes just four years after it exited Australia’s retail fuel market by selling its stake to Caltex in a $4 billion transaction.
Caltex earlier this month announced plans to float a half stake in 250 of its service stations around Australia to form a $1.1 billion listed property trust. At the same time it is navigating a $8.6 billion takeover bid from Canadian convenience giant Alimentation Couche-Tard.
“The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth,” said Mark Nelson, Chevron’s executive vice-president for downstream and chemicals.
“It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply.”
Both companies hope to complete the deal by mid-2020 depending on approval from Australia’s Foreign Investment Review Board and other regulators.
The deal does not include Puma’s local bitumen business. The company said it would use proceeds of the sale to pay down debt.
Singapore-based Puma Energy also counts Angola’s state-owned oil company Sonangol Holdings and another Angolan entity, Cochan Holdings, among its owners.
“This transaction marks another positive step forward in Puma Energy’s commitment to optimise our global portfolio and deleverage our balance sheet by the end of 2020,” Puma Energy chief executive Emma FitzGerald said.
“This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which will drive growth as part of our customer-focused five-year strategy.”