Caltex to acquire Thai British Petroleum Oil<\/p>\n
BANGKOK (AFP): Caltex Oil (Thailand) Ltd. said yesterday it
\nwill acquire the entire retail service station network of British
\nPetroleum Oil (Thailand) Ltd., despite a serious recession and a
\nslump in oil sales.<\/p>\n
Caltex has signed an agreement to take over 48 BP service
\nstations, bringing the number of its outlets in the country to
\nmore than 600, company executives said.<\/p>\n
They said they could not divulge the value of the deal due to
\na confidentiality agreement.<\/p>\n
Caltex Thailand managing director Richard Abrams admitted the
\ncompany was taking a \"big gamble\" amid a \"deep and broad
\nproblems\" facing the economy, but he remained confident of a
\nlong-term recovery.<\/p>\n
Sales of fuel at Caltex service stations in the third quarter
\nwere down four-to-five percent on the previous quarter, while
\nprofit margins were down by up to 50 percent due to the July 2
\nfloat of the Thai baht currency, he said.<\/p>\n
\"With the recent downturn in the economy and the changing
\ntimes, Caltex has adopted an aggressive strategy for Thailand,\"
\nAbrams said.<\/p>\n
\"This acquisition provides an excellent opportunity to
\naccelerate our growth plans ... (It) demonstrates the financial
\nstrength of Caltex and a strong commitment to investing in
\nThailand,\" he said.<\/p>\n
Caltex said in a statement the acquisition was above and
\nbeyond expansion plans worth 200 million dollars announced
\nearlier this year.<\/p>\n
The BP stations -- all of which will be converted to the
\nCaltex name by the middle of next year -- will increase Caltex's
\nmarket share by one percent nationwide, and by two percent in
\nBangkok, it said.<\/p>\n
Abrams said this would take the company's overall retail
\nmarket share to 13.5 percent nationwide, and to 16 percent in
\nBangkok.<\/p>",
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