After BP, which has been operating in Turkey’s fuel distribution sector for more than 100 years, sold its shares in ATAS, which owns existing stations, storage units and a port, to Petrol Ofisi, eyes turned to this sector.
Sector officials interviewed by ECONOMI daily informed that two new acquisitions in the fuel distribution sector, where profitability is limited, are in the final stages.
Stating that the acquisition of BP’s fuel operations in Turkey by Petrol Ofisi was based on a strategic decision rather than a commercial one, sector officials drew attention to the importance of the ATAS facilities in Mersin’s Akdeniz district, which was a refinery in the past but was converted into a port and storage facility after its technology became outdated.
Stating that the importance of volume has emerged due to the low profitability in the sector, sector officials emphasized that BP is faced with the decision of creating volume by growing in fuel distribution or making a sale and that the information that BP has decided to sell has been spreading in the sector for some time. Reminding that Petrol Ofisi, which is owned by a foreign fund, has 1935 dealers, sector officials stated that Petrol Ofisi, which will reach 2,705 dealers with the BP acquisition, will be able to create volume and increase its turnover.
Emphasizing that with ATAS facilities, Petrol Ofisi will gain operational power and will be able to control the costs of bringing and distributing all kinds of fuel products from the South to Turkey, sector officials argued that Petrol Ofisi’s decision is not a short-term commercial move but a strategic one. They underlined that Petrol Ofisi has gained an important logistics opportunity, especially with ATAS.
Two more mid-sized companies are negotiating
Stating that two more medium-sized local fuel distribution chains are at the bargaining table and may result in a sale, sector officials said that one of these local companies is in talks with a Russian company and the other with a local chain. Officials claimed that there is a high expectation that these negotiations will result in a sale. Stating that low profitability is one of the issues of discussion in the sector, the officials pointed out that this is one of the main agenda items in the distribution sector in the coming period and that discussions will continue.