Ukrnafta acquires 51% stake in Shell filling stations in Ukraine

Ukrnafta PJSC, a member of Naftogaz Group, has agreed with Shell to acquire a 51% stake in Alliance Holding LLC, which owns the Shell filling station network. This was reported by the press service of Naftogaz.

The other co-owner of Alliance Holding LLC, which owns 49% of the company, is the state, represented by the State Property Fund.

In the coming days, Ukrnafta, which has been determined as the winner of the competitive process, will apply to the Antimonopoly Committee (AMCU) for a merger clearance, which is a prerequisite for completing the deal. After that, the company will be able to fully complete the transaction and acquire all the rights and obligations of the shareholder.

Ukrnafta will become the majority owner of the filling station network, which includes 118 operating filling stations and other property.

“Naftogaz Group has not only adapted to the war conditions but is also getting stronger. We remain flexible and are not afraid to make decisions that will allow the state to earn money. This will ultimately generate additional financial revenues for Naftogaz Group and contribute to an increase in contributions to the state budget,” said Oleksiy Chernyshov, CEO of Naftogaz Group.

Shell is among the top 10 networks in terms of sales in Ukraine: 118 operating filling stations, No. 9 in terms of fuel sales for 6 months of 2023, and No. 7 in terms of the number of filling stations located mainly in favorable areas with heavy traffic.

“Ukrnafta's Supervisory Board approved the decision because the acquisition of the business, which has been led by a reputable international group for 15 years, will provide Ukrnafta with an expansion of its filling station network and market share, which is in line with the company's development strategy,” said Sergiy Koretsky, CEO of Ukrnafta.

The company notes that all its filling stations will be rebranded within a year. The terms of existing B2B contracts will be fulfilled in full. The company's staff will be retained - 1,550 employees working at the filling stations and the head office.