Oiltanking to sell stake in Indian Oiltanking to Adani Ports

Oiltanking is selling its stakes in Indian Oiltanking Limited (IOT) and its subsidiaries to Adani Ports and Special Economic Zone Limited (APSEZ). IOT is Oiltanking’s Indian joint venture with Indian Oil Corporation Limited (IOC), India’s largest government-owned oil company.

The divestment of Oiltanking’s stake in IOT and its subsidiaries is a result of Oiltanking’s strategic review to continuously optimize its asset portfolio. Oiltanking GmbH is a subsidiary of Marquard & Bahls, an independent holding company in the energy and chemical sector. Through its portfolio, Oiltanking is one of the largest independent tank storage providers for gas, chemicals, and petroleum products worldwide. 

“Since the establishment of IOT in August 1996, the joint venture with IOC has developed into a strong partnership that has grown significantly and achieved many great successes. We are confident that this success story will continue with APSEZ and strongly believe that APSEZ will help to grow the business further at a time when energy demand in India continues to be on the rise. We would like to thank our customers for their trust over the years and express our sincere gratitude to all Indian Oiltanking employees. We wish them all the best for the future,” said Matti Lievonen, CEO of Oiltanking.

The sale is subject to customary approvals by third parties. Ernst & Young LLP is acting as the exclusive financial advisor to Oiltanking GmbH in this transaction.

Completion of the transaction is expected to occur in the course of 2023.

IOT and its subsidiaries own and/or operate a network of six terminals with a total capacity of about two million cubic metres (cbm) for storing and handling of crude oil, petroleum products, ethanol, ATF, LPG and petrochemicals across India, namely Navghar, Paradip, Raipur, Goa, JNPT and Dumad, as well as a biogas plant in Namakkal, Tamil Nadu. 

Adani Ports and Special Economic Zone Ltd, which is part of the globally diversified Adani Group, has evolved from a port company to an integrated transport utility. It is the largest port developer and operator in India with six strategically located ports and terminals on the West coast and six ports and terminals on the East coast of India representing 24% of the country’s total port capacity and handling vast amounts of cargo from both coastal areas and the hinterland. 

The company is also developing two transshipment ports at Vizhinjam, India and Colombo, Sri Lanka. APSEZ’s platform comprises port facilities, integrated and multimodal logistics parks, Grade A warehouses and industrial economic zones and puts it in an advantageous position as India stands to benefit from an impending overhaul in global supply chains. APSEZ’s vision is to be the largest ports and logistics platform in the world in the next decade.