Beautiful Virgin Islands

Saturday, Sep 07, 2024

Abu Dhabi state oil giant weighs £5bn bid for Motor Fuel Group

Abu Dhabi state oil giant weighs £5bn bid for Motor Fuel Group

The Gulf state's national oil company is lining up bankers from JP Morgan to advise on a possible offer for Britain's biggest independent petrol station operator, Sky News learns.
One of the world's biggest oil producers is contemplating a multibillion pound takeover bid for Motor Fuel Group (MFG), Britain’s biggest independent petrol station operator.

Sky News has learnt that the Abu Dhabi National Oil Company (ADNOC) is lining up bankers to work on a potential offer for MFG, which has been put up for sale with a price tag of about £5bn.

City sources said on Friday that ADNOC, which is among the 20 biggest oil companies in the world, had yet to make a firm decision about whether to bid ahead of an initial deadline next week.

However, it is preparing to hire JP Morgan, the Wall Street investment bank, to advise it on its interest in the UK company, they said.

ADNOC would be a significant player in a bidding war for a company that has rapidly grown is estate and profitability, and is now seeking to harness the automotive industry's efforts to embrace the transition to cleaner energy.

MFG has committed to spending £50m this year on installing hundreds of electric vehicle charging points across its roughly-900 sites, and believes it can play a leading role in that shift during the coming years.

A bid from ADNOC would represent one of the biggest single investments by a company from the Gulf state in a British business, and follows the signing of a £10bn sovereign investment partnership between the UK and UAE last year.

Technology, energy transition, infrastructure and life sciences were identified as the principal focuses for the partnership between the Abu Dhabi fund Mubadala and the UK's Office for Investment.

ADNOC produces roughly 3m barrels of oil each day, as well as 10.5bn cubic feet of gas, placing it among the world's largest producers of the two energy sources.

If it does bid for MFG, it will probably be pitted against Fortress Investment Group and Macquarie, the Australian financial services behemoth which recently bought Roadchef, the motorway services operator, for about £1bn.

People close to the process cautioned, however, that a sale was not certain to go ahead, given difficult financing markets.

Clayton Dubilier & Rice (CD&R) will only proceed with a sale if it can secure an attractive valuation, they added.

MFG has grown through a series of acquisitions to become the largest independent player in the sector, behind BP and Shell.

A merger of its assets with Morrisons' petrol stations was mooted by City analysts at the time of the supermarket chain's takeover by CD&R, but the prospect of that transaction receded after a £750m deal for EG Group to buy Asda's forecourts was abandoned in October.

Asda and EG Group are both controlled by TDR Capital and the lagger's founders, Mohsin and Zuber Issa.

CD&R has owned MFG since 2015, and has now picked a quartet of banks to oversee the company's sale.

Citi, Deutsche Bank, Goldman Sachs and Royal Bank of Canada will work jointly on the process, with a stock market listing considered to be far less likely.

The company has grown substantially since CD&R bought it in 2015 from Patron Capital Partners in a deal worth about £500m.

Three years later, it paid £1.2bn to add MRH, the market leader, creating a group operating under fuel brands such as BP, Esso, Shell and Texaco.

Profits are understood to have risen about tenfold since CD&R's original acquisition of MFG.

Like rivals, it has invested heavily in its convenience retailing proposition, featuring the likes of Costa Coffee, Greggs and Subway at many of its sites.

EG is undertaking a review of its strategic options and has been linked with a merger with Canada's Alimentation Couche-Tard, while Rontec, the group controlled by the entrepreneur Gerald Ronson, has also been periodically linked with a sale.

MFG is run by William Bannister, who acquired the business in 2011 through a management buy-in, while it is chaired by Alasdair Locke, a serial entrepreneur in the energy industry.

Both men would be in line for substantial windfalls from a £5bn sale.

ADNOC could not be reached for comment on Friday, while JP Morgan and CD&R both declined to comment.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Huawei Poised for Major AI Chip Unveil at Shenzhen Event
Nvidia’s AI chips are cheaper to rent in China than US
China ends tariffs on all goods exported to China from the poorest countries in the world it has diplomatic ties with, including 33 African nations
Blinken May Not Seek Another Term Due To Family Priorities
Labour Pushes for Special Tribunal Against Russia for Ukraine Invasion
Oil Companies to Contest Judicial Review of North Sea Projects
Ed Balls Urges Keir Starmer and Rachel Reeves to Address Winter Fuel Payments Controversy
British Army Major General Dismissed for Unwanted Advances
Campaigners Urge Bold Actions to Combat Rising Heart Disease in UK
UK Requires One Trillion Pounds Investment for Economic Growth
Plan to House Asylum Seekers at Former Dambusters Home Dropped
UK Drops Indecent Assault Charges Against Harvey Weinstein
Return of Brazilian Artworks to Bahia
UK Signs Landmark International AI Treaty
Demand for Justice After Death of Ugandan Runner Set on Fire
Ukraine's Major Government Reshuffle: Andrii Sybiha Appointed New Foreign Minister
North Korea Executes Officials Over Flood Response
French Woman Testifies in Landmark Rape Trial
Sicily Yacht Disaster: Fatal Asphyxiation Claimed More Lives
Michel Barnier Appointed as Prime Minister of France
The art technique of Grandma Mei Ling, age 82
Mongolia Refuses to Arrest Putin Despite ICC Warrant
UK State Pension to Increase by Over £400 Annually
Amazon Announces 10% Pay Increase for UK Workers
Grenfell Tower Fire Inquiry Demands Swift Justice
French Police Clear Migrant Camp Near Calais
New Law Proposes Jail Time for Covering Up Sewage Dumping in England and Wales
John Swinney's Government Programme Faces Criticism in Scotland
France Pilots Mobile Phone Ban in Schools
Priti Patel Eliminated in First Round of Tory Leadership Race
And Justice for ALL: Elon Musk threatens to go after Brazilian government assets
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
US Charges Hamas Leaders With Terrorism Over October 7 Attack on Israel
Russian Missile Strike Kills 49 in Poltava, Ukraine
Major Cabinet Resignations in Ukraine
Tory Leadership Candidates Criticize Rivals' Promises to Leave ECHR
Campaigners Propose Pay-Per-Mile Charge for UK Electric Cars
Labour Urged to Shift Asylum Policy Rhetoric
Hossein Shamkhani: The Rise of an Oil Tycoon
Putin Defies ICC Arrest Warrant with Mongolia Visit
Frenchman On Trial for Decade-long Abuse of Drugged Wife
The British bus driver explains to usual suspects that they cannot travel without a ticket. Education is important.
Irish Police Arrest Enoch Burke, the teacher who refuses to endorse and affirm transgender ideology
US Soldier Attacked in Turkey
Switzerland Urged to Reconsider Its 500-Year Neutrality
AfD's Historic Victory in Thuringia State Election, Germany
British Woman Sets Record for Fastest Lake Geneva Swim
Rising Influence of AfD Highlights Growing East-West Divide in Germany
Spanish Police Arrest Three for Ibiza Luxury Home Robberies
AfD Secures Historic Victory in East German State Elections
×