Z Energy to acquire Chevron New Zealand operations

Z Energy Ltd will acquire Chevron Corp's downstream Australian operations for a sum of NZ$785 million (US$556.41 million), as the energy giant offloads assets in the region in response to declining oil prices and struggling margins.

As part of the acquisition agreement, Z Energy will obtain approximately 150 Caltex branded service stations and 70 diesel fuelling stations operated by Chevron, as well as the company’s lubricant interests, adding to Z Energy's 210 Z service stations. The company will operate the two brands separately. The deal is subject to clearance by the New Zealand competition regulator and the Overseas Investment Office.

"The acquisition is a great fit with our longer term market growth strategy," said Z Energy Chief Executive Officer Mike Bennetts. "Caltex is a successful and highly attractive business in New Zealand and the acquisition means we can use the scale of the combined operation for the expanded supply of biodiesel to a broader market."

Edited from various sources by Rosalie Starling

Sources: Reuters, The Australian, National Business Review

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