Siam United Services to buy Petronas’ retail unit in Thailand
Siam United Services PCL, a distributor of petroleum products, expects to complete the acquisition of the Thailand retail unit of Malaysia’s national petroleum company Petroliam Nasional Bhd (Petronas) within the year.
Siam United has been selected as preferred bidder for all shares of Petronas Retail (Thailand) Ltd., Siam United said in a statement to the Thai stock exchange. Petronas Retail (Thailand) operates petrol stations in Thailand.
Siam United submitted a bid earlier this month for Petronas Retail’s 100 retail outlets.
Siam United has yet to negotiate terms and conditions for the deal, it added in the statement without giving details. Chairit Simaroj, the managing director of Susco, said the company has a sufficient mix of cash and bank loans to fund the acquisition.
“The acquisition will integrate our oil pump business. Most Petronas stations are located near housing areas in Bangkok’s suburbs, while most Susco oil pumps are on highways,” he said. The purchase will bring Susco’s pumps to 244.
The transfer of assets is expected to be finalized by November.
Susco’s revenue from the retail oil business will jump by 76.5% to 30 billion baht (US$966.1 million) by the end of next year, from 17 billion baht (US$547.5 million) last year.
Petronas Retail (Thailand) entered Thailand in 2005 by acquiring the assets of Kuwait Oil, whose brand is Q8.