Total acquires majority stake in leading Dominican fuel retailer
Published:Friday | February 5, 2016 | 4:13 PM
Total acquires majority stake in leading Dominican fuel retailer
FRANCE-based petroleum company, Total, which has 55 service stations under its brand in Jamaica, has strengthened its presence in the Caribbean by acquiring a majority stake, 70 per cent, in the Dominican Republic's leading fuel retailer, Putney Capital Management.
Total's foray into the Dominican Republic will see the rebranding of 130 service stations, previously operated as Shell by V Energy, through VICINI, whose energy and industry investment funds are managed by Putney Capital Management.
V Energy was a partnership between Barbadian Sol affiliate, Sun Petroleum, and Dominican partner VICINI, carried out in May 2011. VICINI, however, acquired a 100 per cent stake in V Energy in December 2013, operating under the Shell Brands International AG licence.
well-established network
The acquisition, announced late last week, sent ripples throughout the international energy market. The transaction includes a well-established network of stations, along with significant commercial oil products and lubricants-sales positions.
Putney Capital Management will continue to play a significant role as Total's Dominican partner, retaining a 30 per cent stake.
The joint venture will be named Total Dominicana and managed as part of Total's network of 600 service stations throughout nine countries in the Caribbean, led by Puerto Rico. Jamaica accounts for 55 stations following Total Jamaica's acquisition of Esso Jamaica in 2008.
A communique from Total's Paris headquarters described the acquisition as illustrating "Total's strategy in the marketing and services segment of selectively expanding in growth areas while maintaining strong profitability".
"This partnership allows the group to continue its development in the Caribbean retail market where it is now one of the regional leaders," explained Philippe Boisseau, a member of Total's executive committee and president of marketing and services.
"Combining Total's operational excellence and Putney Capital Management's market knowledge allows us to unlock synergies with our existing operations in the area," Boisseau added.
Total is the world's fifth-largest petroleum company, with a strong presence in more than 130 countries and in excess of 20,500 retail stations. The French company is the undisputed leader in Europe and Africa.