Nigerian Petroleum Company Limited (NNPCL) on Saturday announced the acquisition of OVH Energy Marketing, which is the owner and operator of Oando branded retail service stations.
NNPC will now get a reception jetty with 240,000MT capacity, 3 lubricants blending plants, 8 Liquified Petroleum Gas(LPG) plants, 3 aviation depots and 12 warehouses.
With this acquisition, NNPC will get an additional 380 filling stations under the NNPC Retail brand in Nigeria and Togo.
Chairman of NNPC Limited, Margery Okadigbo made this announcement in Abuja.
Curiously, no purchase price was made available to the public. For a company that claims to be more open, that is a critical oversight. Such a big transaction should be made public with the accompanying purchase price and consequent liabilities that follow.
The petrol retail business is actually a low margin business and it is a bit worrying why a company like NNPC that is struggling to find its feet in the industry would dig deeper into that sector with such an acquisition.
Nevertheless, the Nigerian public should be made aware of the purchase price so appropriate bench marking can be done to scrutinize the transaction.
Photocredit: Daily Trust