Region: COPEC to buy off Exxon lubricant and fuel business across Andes region

Chile’s Compañía de Petróleos de Chile (COPEC) will move to buy out ExxonMobil’s businesses across Colombia, Ecuador and Peru, for a total of $747 million US. The agreement covers the operation and distribution of fuel for the Jorge Chávez airport in Lima, as well as Exxon’s fuel businesses in Colombia and Ecuador.

COPEC is the main shareholder in Colombia’s Terpel, which itself is the largest player in Colombia’s fuel market with 42% and sales of $3.8 billion, compared to around 1.7 billion for Exxon Mobil. COPEC has assured investors that the deal is still pending approval from Colombia’s competition authorities, and that their intention is to “re-sell, as soon as possible, the newly acquired fuel businesses.”

“The agreement makes explicit that these assets will not be retained, and that the strategic focus of the transaction, in Colombia’s case, will be Mobil’s lubricant business, of which it is the market leader” said COPEC. The company added that the transaction will also have to be cleared by Ecuador’s competition authorities and will likely not be perfected until the middle of 2017.

Full Content: El Colombiano

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