DCC to Buy Danish Business from Alimentation Couche-Tard for DKK300 Million
March 23 2016 - 8:11AM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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