DCC Dcc Plc

LONDON--DCC PLC (DCC.LN) Wednesday said it will buy a commercial, aviation and retail fuels business in Denmark from Alimentation Couche-Tard Inc. (ANCUF) for 300 million Danish krone ($45.3 million).

The acquisition will be merged with DCC's existing oil distribution business in Denmark and will leverage DCC's newly developed retail operating platform, said the international sales, marketing, distribution and business support services group.

The completion of the acquisition is conditional on the European Commission competition clearance, the company said, adding that it expects the transaction to complete in the second half of 2016, after the relevant clearances will have been received.

The acquisition will comprise Shell's (RDSB.LN) commercial and aviation distribution business in Denmark, a retail petrol station network and contracts to supply 66 dealers, DCC said. DCC will also enter into a long-term brand partnership with Shell to operate the network under the Shell brand, it said.

The acquired business will have total incremental volumes of 0.9 billion liters and is expected to generate an initial return on invested capital commensurate with DCC's Energy's existing returns, the company said.

Shares at 1140 GMT up 55 pence, or 1%, at 6,040 pence valuing the company at 5.4 billion pounds ($7.8 billion).

Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter @OlgaCotaga

(END) Dow Jones Newswires

March 23, 2016 07:56 ET (11:56 GMT)

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