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Caribbean Business News

Chevron Completes Caribbean Business Sale to Rubis

Author: Nigel Thomas
Islandjournal.net
Last Update: 9:26 AM ET April 02 2011


6:50 AM New York – Chevron completed the sale of its Caribbean fuel marketing businesses to France based Rubis. The deal agreed in November was consummated yesterday for the nine Caribbean and two South American locations and is expected to receive regulatory approval from three Central American countries.

Chevron Corp today finalized the sale of its fuel marketing business in the Caribbean and South American peripheral nations.

The deal struck with France based Rubis on November 18, 2010 will see the sale of its fuel marketing and aviation business in nine Caribbean islands, two South American countries and three Central American nations.

The oil exploration and marketing giant based in the U.S. has been selling off its refining and marketing operations outside the country and focusing more on new oil exploration areas.

Under the agreement, Rubis will acquire 174 service stations operating under the Texaco brand, an equity interest in an associated refinery operation, proprietary and joint-venture terminals and aviation facilities and commercial and industrial fuel business.

Chevron and Texaco sold the businesses in Antigua, Barbados, Grenada, Dominica, St Lucia, St Vincent, St. Kitts, Martinique, Guadeloupe, Trinidad and three South American countries Guyana, French Guiana and in awaiting the approval in Central American nations Nicaragua, Costa Rica and Belize.

The sale does not include the Chevron-Texaco operations in Jamaica.

The combined business in the region represents €445 million in revenues and 1.2 million cubic meters of fuel.

The sale price of $300 million including working capital agreed by Rubis will be paid with the help of an equity offering, debt financing and from cash in the business and will lift its sales in the Caribbean region four-fold.

The valuation represents eleven times 2009 earnings and is expected to be accretive for Rubis in 2011. After the latest acquisition, half the company earnings will be from the Caribbean businesses.

The deal excludes any earn out payment based on current or future earnings and any liability linked to the previous operations.

With the latest deals Rubis has completed the acquisition of Shell’s LPG business in South Africa, BP’s LPG distribution business in Spain and Linde LPG cylinder business in Switzerland.

Rubis operates under the Vitogaz brand.


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