OMV AG yesterday announced it has finalized the company's Eur377 million Bayernoil acquisition. The acquisition includes a 45%-stake in the Bayernoil refinery, an 18% stake in the Transalpine Pipeline and a network of retail stations in Germany, Hungary and Slovakia, which OMV bought from BP PLC.
The closing for this acquisition, that was announced in February this year, is effective as of July 1, following the unconditional approval of the European Union Commission in June and the earlier approval of the cartel offices in April 2003. At a purchase price of Eur377 million, this is the largest acquisition in OMV's corporate history.
The company will increase its debt by EUR130 million to finance the deal. With this acquisition, the number of OMV's filling stations in central and eastern Europe rises to 1,736, representing a market share of 12%. The company's target remains to increase the market share to 20% by 2008.
With the acquisition of the refinery, OMV's refining capacity in Bavaria rises by 5.4 million metric tons to 8.8 million tons a year. Furthermore, the company said the acquisition of an additional 18% stake in the Transalpine Pipeline increases OMV's share in one of the most important oil pipelines from the Mediterranean to northern Europe to 25%.