Essar Expands UK Fuel Network with £400-450m Petrol Station Acquisition

Essar Energy Transition Retail has made a significant expansion in the UK by acquiring 118 petrol stations from SGN Retail. The acquisition brings EET Retail's total portfolio to 235 sites, marking a major step towards its goal of building a vertically integrated business model.

The company owns the Stanlow refinery, which produces around 20% of the road fuels used in the UK. By controlling retail petrol stations, EET Retail can move its fuel directly to consumers, potentially stabilizing its supply chain and capturing better margins compared to selling through third-party wholesalers.

Financial details place the transaction value between £400 million and £450 million, funded by a £250 million senior debt facility from international lenders including Macquarie Bank, First Abu Dhabi Bank, Royal Bank of Canada, Mizrahi Tefahot Bank, and SMBC Bank International. This indicates institutional lenders' confidence in EET Retail's growth plan.

The company aims to operate 800 sites across the UK by 2031, but integrating 118 new sites requires significant operational coordination to maintain service quality and efficiency across its network.