The Nigerian Independent Petroleum Company (NIPCO) on Wednesday announced the acquisition of 60 per cent stake in the downstream operation of Mobil Oil Nigeria (MON).
Mr Venkataraman Venkatapathy, NIPCO Managing Director, disclosed this in a statement made available to the News Agency of Nigeria (NAN) after signing the deal.
He said that the acquisition was agreed on after the execution of a Sales and Purchase Agreement with Exxon Mobil.
According to him, NIPCO will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies.
“The transition period will also enable NIPCO plc to effectively manage a smooth and successful completion of the transaction.
“We will initiate the process of getting approval from the Securities and Exchange Commission of Nigeria (SEC) and Nigerian Stock Exchange (NSE) and others.
“NIPCO considers this acquisition an important synergy.
“It is part of our strategic move to support NIPCO’s continuous growth and expansion of its Nigerian retail footprint.
“We are confident of adding tremendous value to MON and likewise MON will add a huge value to NIPCO,” he said.
The managing director said that NIPCO would continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell its lubricants under branding licence(s) from Exxon Mobil.
He expressed the company’s profound gratitude and appreciation to Exxon Mobil for selecting NIPCO as the preferred bidder for the acquisition of MON.
“We will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” Venkatapathy said.
He said that NIPCO’s expansion trend reinforced its implicit confidence in Nigeria’s future.
The managing director promised that NIPCO’s indigenous downstream oil and gas company would ensure stability, prosperity, sustainability and growth for the company and shareholders.