This excerpt taken from the BP 6-K filed Feb 4, 2010.
BP RECEIVES OFFER FOR ITS RETAIL FUELS AND CONVENIENCE BUSINESS IN FRANCE
BP has received an offer from Delek Europe B.V., one of the largest fuel retailers in Europe and a subsidiary of the Delek Group Ltd, to buy its French retail fuels and convenience business including selected fuels terminals.
The proposed purchase price is €180million (approximately US$251 million), in cash, subject to working capital adjustments.
On receipt of the offer to purchase BP's approximately 416 petrol stations in France, BP has entered into a period of exclusivity with Delek Europe and has started discussions with the relevant works councils.
The sale would also include interests or ownership in three fuel distribution depots and it is expected to include a long term agreement for acceptance of fuel cards. The proposed transaction is currently expected to be completed in the second half of this year.
Any final transaction will be subject to works councils and regulatory approvals.
As well as an agreement for BP branding to remain on the forecourts for a number of years under a licensing agreement, BP would also continue to supply fuel including premium BP Ultimate fuels under a supply agreement.
If the offer is accepted and the deal is approved then BP would still continue to retain a significant presence in France through its business to business fuels, bitumen, lubricants and aviation businesses. Staff currently working for the retail business would transfer to the new owner.
Jean-Baptiste Renard, BP's Head of Region for Europe and South Africa, said: "We believe the decision to sell is right for the business as it means the BP brand will stay on the forecourts, it is right for staff as their jobs would be retained, and it would give the new owners an opportunity to keep investing in the business."
Zion Ginat, CEO Delek Benelux, commented: "Delek is excited to expand and develop its retail business in Europe through the proposed acquisition of BP's marketing business in France. Delek is committed to drive value and to continue to strengthen the BP brand name in France for its customers and employees."