Essar Energy Transition Retail Acquires UK Forecourt Operator SGN Retail For £250 Million

Essar Energy Transition Retail, a subsidiary of Cheshire-based Essar Energy Transition Fuels, has concluded a deal to buy the entire shareholding of UK independent forecourt operator SGN Retail for £250 million. This acquisition adds 118 high-quality forecourt locations to EET Retail's existing portfolio, bringing the total to 235 sites.

With this expansion, EET Retail will have a nationwide mobility platform with an annual throughput of over 650 million liters of fuel. The acquisition financing includes cash and a new £250 million senior debt facility arranged by a consortium of international banks. The strategy behind this move is to integrate fuel production with retail distribution for a more efficient and reliable supply model.

EET Retail aims to grow its network to 800 forecourts by 2031, which would give it control over approximately 9% of the UK's market. This expansion is supported by the UK's demographic growth, increasing multi-car households, and the decreasing number of forecourts in the country. The arrangement allows EET Retail to directly supply fuel from its Stanlow refinery to its own forecourts, enhancing domestic fuel security and distribution efficiency.