Following Vitol's announcement in October 2017 that it had entered into an agreement to acquire Noble Americas Corp. (NAC), a subsidiary of Noble Group, Vitol has confirmed the acquisition – the sale is estimated at approximately US$400 million.
Vitol has paid an initial US$272 million to Noble, and also deposited a further US$122 million with an escrow agent; the total to be paid out from the escrow account will be subject to adjustment based on an amount (which may be positive or negative) to be determined at a future date in accordance with the terms and conditions of the proposed disposal.
The figure of US$400 million is lower than the illustrative cash proceeds of US$575 million determined in October; the decrease is primarily due to NAC’s operating losses in the period between the announcement in October and the completing of the acquisition.
NAC trades large physical volumes of crude and refined oil products via ship, barge, pipeline, truck and rail. It also has blending and wholesale capabilities with long-term leases on liquid storage facilities.
Read the article online at: https://www.hydrocarbonengineering.com/product-news/15012018/vitol-completes-purchase-of-noble-americas/