Caltex to acquire Thai British Petroleum Oil

Caltex to acquire Thai British Petroleum Oil

BANGKOK (AFP): Caltex Oil (Thailand) Ltd. said yesterday it
will acquire the entire retail service station network of British
Petroleum Oil (Thailand) Ltd., despite a serious recession and a
slump in oil sales.

Caltex has signed an agreement to take over 48 BP service
stations, bringing the number of its outlets in the country to
more than 600, company executives said.

They said they could not divulge the value of the deal due to
a confidentiality agreement.

Caltex Thailand managing director Richard Abrams admitted the
company was taking a "big gamble" amid a "deep and broad
problems" facing the economy, but he remained confident of a
long-term recovery.

Sales of fuel at Caltex service stations in the third quarter
were down four-to-five percent on the previous quarter, while
profit margins were down by up to 50 percent due to the July 2
float of the Thai baht currency, he said.

"With the recent downturn in the economy and the changing
times, Caltex has adopted an aggressive strategy for Thailand,"
Abrams said.

"This acquisition provides an excellent opportunity to
accelerate our growth plans ... (It) demonstrates the financial
strength of Caltex and a strong commitment to investing in
Thailand," he said.

Caltex said in a statement the acquisition was above and
beyond expansion plans worth 200 million dollars announced
earlier this year.

The BP stations -- all of which will be converted to the
Caltex name by the middle of next year -- will increase Caltex's
market share by one percent nationwide, and by two percent in
Bangkok, it said.

Abrams said this would take the company's overall retail
market share to 13.5 percent nationwide, and to 16 percent in
Bangkok.