Petrom, the largest oil and gas producer in Southeastern Europe, sold its 99.99% stake in the subsidiary Petrom LPG SA to Crimbo Gas International. The decision taken by Petromís Supervisory Board is in line with the strategy of Petrom and OMV Group to optimize the R&M portfolio in order to improve efficiency, thus contributing to the sustainable performance necessary for growth. Parties have agreed not to disclose the transaction value. Completion is also subject to Competition Council clearance.
Neil Anthony Morgan, member of Petromís Executive Board, responsible for Refining and Marketing: "The subsidiary Petrom LPG manages a high number of small clients and has hence high business complexity. This complexity of a non-core business is not in line with our strategy. Therefore, as part of our portfolio optimization process, we decided to reduce the complexity by selling this business line to a specialized company, for which bottling and distribution represents its core business".
Petrom LPG business includes bottling gas cylinders (in the bottling plants in Negoie?ti and Timi?oara), as well as gas cylinder distribution throughout the entire country, sale and distribution of propane, sale and distribution of auto gas and wholesale activities.
Following this transaction Petrom exits from the bottling and distribution market but will continue to produce LPG and sell gas cylinders and auto gas through its filling stations. Therefore, Petrom will continue to supply LPG from its refinery to the company subject of this transaction and the latter will supply cylinders and auto gas to OMV Petrom Marketing SRL.
Presently, Petrom LPG has approximately 260 employees. The impact of this transaction will not have a material impact on Petromís financials, i.e. it will be below 10% of Petromís total assets value, respectively net annual turnover of 2011.