By Erik Wasson
THE CAMBODIA DAILY
French-owned Total Cambodge on Thursday agreed to buy most of Shell Cambodia's service stations, commercial and aviation fuel distribution businesses here, the two companies announced Friday.
The move significantly expands Total's retail position in Cambodia at a time when the company is negotiating for the rights to explore for oil in Cambodian waters off of Sihanoukville.
Total said in a statement that the deal will add nine service stations to its network, giving it 36 locations nationwide.
"This deal confirms Total's growth strategy in the Southeast Asian region," the statement reads. In an emailed response to questions, Shell Cambodia General Manager Surasak Kosadat wrote that Shell made the deal as part of a program to create "maximum value to customers and shareholders."
"This deal is a standalone with no impact expected for the rest of the Mekong region," Surasak wrote, adding that the handover of the assets, which included fueling stations at Phnom Penh and Siem Reap airports, should be finalized within months. The price is confidential, he added.
"It is certainly a step in the right direction as far as improving our position in the country," Total Cambodge General Manager John Wilson said.
He said that negotiations with Shell had taken place over some time and that the sale price of the assets cannot be revealed.
"We will be the largest international distributor here," Wilson added.
Market research consultant Tim Smyth, the head of Indochina Research, said that without knowing the details behind the sale, his initial interpretation is that Shell did not calculate high enough future returns on the investment it would have taken to compete with Caltex and Total here.
"Obviously, Caltex and Total have aggressively established themselves," he said. "Shell may have other priorities in the region."
The move significantly expands Total's retail position in Cambodia at a time when the company is negotiating for the rights to explore for oil in Cambodian waters off of Sihanoukville.
Total said in a statement that the deal will add nine service stations to its network, giving it 36 locations nationwide.
"This deal confirms Total's growth strategy in the Southeast Asian region," the statement reads. In an emailed response to questions, Shell Cambodia General Manager Surasak Kosadat wrote that Shell made the deal as part of a program to create "maximum value to customers and shareholders."
"This deal is a standalone with no impact expected for the rest of the Mekong region," Surasak wrote, adding that the handover of the assets, which included fueling stations at Phnom Penh and Siem Reap airports, should be finalized within months. The price is confidential, he added.
"It is certainly a step in the right direction as far as improving our position in the country," Total Cambodge General Manager John Wilson said.
He said that negotiations with Shell had taken place over some time and that the sale price of the assets cannot be revealed.
"We will be the largest international distributor here," Wilson added.
Market research consultant Tim Smyth, the head of Indochina Research, said that without knowing the details behind the sale, his initial interpretation is that Shell did not calculate high enough future returns on the investment it would have taken to compete with Caltex and Total here.
"Obviously, Caltex and Total have aggressively established themselves," he said. "Shell may have other priorities in the region."
1 comment:
Uh Oh! No more competition and definitely there will be more high gas price in Cambodia!
These days almost every businesses in Cambodia are owned by the foreigners because AH HUN SEN Vietcong slave government reasons that the foreigners have no interest in Cambodia and so they will not try to overthrow him but if any Cambodian businesses become successful and they will sponsor to overthrow his government!
Who say money don't talk and can change thing?
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